Kia India Announces Second Plant With $2 Billion Investment
Kia India has signed an agreement with the Andhra Pradesh government for a second factory in Anantapur. Kia and its suppliers will invest $2 billion, adding 2 lakh vehicles of annual capacity, with production planned for early 2030.
Kia India announces second plant in Anantapur, Andhra Pradesh, with Kia and its suppliers committing $2 billion to the project, according to the company's announcement on November 12, 2026.
The carmaker signed a Memorandum of Understanding (MoU), a preliminary agreement, with the Andhra Pradesh government. Production is planned to begin in early 2030.
Capacity and jobs
The new factory will have an installed capacity of 2 lakh vehicles a year. One lakh equals 100,000, so that is 200,000 vehicles.
That would take Kia's total annual manufacturing capacity in India to 6.30 lakh units. The company lists its current plant's capacity at 4.30 lakh units, so the addition represents an increase of around 47%.
Kia expects the project to generate around 12,000 direct and indirect jobs. The plant and its supplier operations will cover a combined 465 acres.
The factory will handle stamping, welding, painting and assembly, the same four processes carried out at Kia's existing Anantapur site.
The existing site
The first plant covers 945 acres, including supplier operations, and supports 24,237 direct and indirect jobs, according to Kia. The company puts the initial investment there by Kia and its suppliers at $2.9 billion.
Cumulative investment across the two plants is expected to reach up to $5 billion, or Rs 47,000 crore.
Models still unnamed
Kia says the second facility will build new models across internal combustion and electric powertrains. It has not yet named them.
The current plant produces the Seltos, Sonet, Syros, Carens, Carens Clavis, Carnival and Sorento. Its mix already includes the Syros EV, the Carens Clavis EV, CNG versions of the Carens and Carens Clavis, and the Sorento Hybrid.
Gwanggu Lee, Managing Director and CEO of Kia India, said the second plant would give the company more flexibility to respond to demand and introduce new models. He added that the expanded manufacturing base would serve both Indian and overseas markets.
Roadmap and timing
Kia's previously announced India roadmap targets annual sales of around 4.10 lakh units and a 7.6% market share by 2030. It also calls for eight electrified models, including hybrids and battery electric vehicles, by the end of the decade.
The Seltos Hybrid is expected in 2027, with hybrid versions of the Sonet and Carens planned by 2029. Kia has also outlined another locally produced small electric SUV by 2029.
Those launches come before the second plant starts production, so Kia has not said how it will split the models between the two factories.
The expansion follows Hyundai Motor Group's October announcement of a $15.5 billion India investment programme for 2026–2032. That programme covers manufacturing, research and development, and supplier localization.
