Kia India to invest USD 2 billion for new manufacturing unit in Andhra
This project is expected to create around 12,000 jobs and increase Kia India's annual production capacity to 6,30,000 vehicles.
New Delhi, Nov 12 (PTI) Kia India will invest USD 2 billion to set up a new manufacturing facility in Andhra Pradesh that will increase the South Korean automaker's annual production capacity to more than 6 lakh units.
"I am so delighted to announce the expansion of Kia's presence in Andhra Pradesh through the establishment of an additional manufacturing plant," said Gwanggu Lee, Managing Director and Chief Executive Officer of Kia India, while speaking at the CII Partnership Summit on Thursday.
This project is expected to create around 12,000 jobs and increase Kia India's annual production capacity to 6,30,000 vehicles.
Kia India already has a manufacturing facility in Anantapur, Andhra Pradesh, which it set up in 2017. It has an annual manufacturing capacity of 4.30 lakh units.
Lee did not specify any timeline for the investment or by when the additional capacity would become operational.
In the financial year 2026, the automaker produced 3.17 lakh units. It dispatched 2.89 lakh units in the domestic market and exported 27,953 units.
The capacity addition comes as Kia India prepares to launch multiple models across different powertrains to capture a larger share in India's passenger vehicle market.
Apart from battery-electric, petrol and diesel vehicles, the automaker also has plans to launch hybrid vehicles, and it has already announced entry into the CNG market with Carens.
The automaker recently launched a facelift version of its popular Seltos mid-size SUV and the new Sorento, which the company expects to generate robust volume going forward. Apart from these two models, Kia India sells the Sonet, Syros, Carens and Carnival SUVs.
"Our journey in Andhra Pradesh began in 2017, when our first manufacturing plant was established and commissioned in a record time of just 14 months. Kia is proud of being among India's leading automotive manufacturers and the fastest OEM to achieve one million vehicle production in just four years and two million vehicles within seven years, Lee said.
The plant has also become a key export hub, with over 4.1 lakh vehicles and kits exported to nearly 100 countries, reinforcing India's position as a global manufacturing powerhouse and supporting the vision of Make it India for the world, he added. PTI