VISAKHAPATNAM: Kia Corporation has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Government to expand its manufacturing operations in the State, increasing its annual production capacity by an additional two lakh cars.
The expansion will involve an investment of Rs 19,000 crore, and is expected to generate employment for 12,000 people.
The MoU was signed at the 31st CII Partnership Summit in Visakhapatnam on Thursday in the presence of Chief Minister N Chandrababu Naidu and Kia India MD and CEO Gwanggu Lee. With the expansion of its Penukonda manufacturing facility in Anantapur district, Kia’s annual production capacity in AP is expected to increase from 4.3 lakh to 6.3 lakh vehicles. The company plans to establish an expanded car manufacturing facility at Erramanchi in Sri Sathya Sai district, with an investment of $2 billion. The government has urged the company to complete the expansion by May 2029.
Kia cars made in AP are now exported to 100+ countries
Speaking on the occasion, Naidu recalled the efforts made by the State to bring Kia to Andhra Pradesh. The government facilitated the project by ensuring water supply to the Gollapalli Reservoir, and providing connectivity to the National Highway and Bengaluru airport. He stated that he had personally visited South Korea to convince the company’s management to invest in Andhra Pradesh. The plant was constructed in 14 months, and the first Kia car manufactured in the State was subsequently inaugurated by him.
Kia-made vehicles from Andhra Pradesh are currently exported to more than 100 countries. The Chief Minister said the company’s decision to make another major investment reflected its confidence in the State’s industrial ecosystem. He expressed hope that South Korean companies would become ambassadors for AP.