Kia is gearing up to introduce more petrol, diesel, and electric vehicles in India as the South Korean manufacturer commits to a second production facility in Andhra Pradesh. The company has signed a Memorandum of Understanding with the state government for another factory in Anantapur where its existing manufacturing operations began in 2019. The new facility will accommodate future combustion engine and electric models as Kia looks to increase its domestic manufacturing capabilities.
The investment will amount to USD 2 billion (Rs. 18,750 crore) from Kia and its supplier partners while vehicle production is scheduled to commence in early 2030. The proposed manufacturing facility will have an installed annual capacity of 2 lakh vehicles as it takes the combined production capability of to 6.3 lakh units. The company currently operates a factory capable of manufacturing 4.3 lakh vehicles annually.
The second plant will provide additional manufacturing capacity for vehicles intended for domestic sales and overseas shipments as both IC-engined and battery electric vehicles will be manufactured there. The new factory will occupy 465 acres alongside the facilities planned for component suppliers. The project is expected to generate around 12,000 direct and indirect employment opportunities in Andhra Pradesh.
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| Particulars | Existing Plant | Second Plant |
|---|---|---|
| Location | Anantapur | Anantapur |
| Production | Operational | Early 2030 |
| Annual capacity | 4.3 lakh units | 2 lakh units |
| Land area | 945 acres | 465 acres |
| Investment | USD 2.9 billion | USD 2 billion |
| Employment | 24,237 | Around 12,000 |
| Powertrains | ICE, EV, HEV, CNG | ICE and EV |
The manufacturing operations will consist of vehicle stamping, welding, painting and final assembly. The existing factory and its supplier facilities occupy 945 acres and were established with an initial investment of USD 2.9 billion. The manufacturing complex currently supports 24,237 direct and indirect jobs as Kia produces the Seltos, Sonet, Syros, Carens, Carens Clavis, Carnival and Sorento at its existing facility.
The portfolio comprises different petrol, diesel, CNG, hybrid and electric powertrain configurations based on the vehicle. Once the second facility becomes operational, the cumulative investment in both plants will stand at nearly USD 5 billion. The two manufacturing complexes and their respective supplier facilities will occupy a combined 1,410 acres.
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The total number of direct and indirect employment opportunities associated with the facilities could exceed 36,000 based on the existing workforce and projected recruitment figures. Commenting on the occasion, Gwanggu Lee, Managing Director and CEO, Kia India, said,
“India is central to Kia’s long-term growth ambitions, and the trust our customers have placed in us since we began operations in Anantapur has been instrumental in our journey. Our second manufacturing plant marks a significant new chapter, strengthening our ability to respond to customer demand with greater speed and flexibility, while supporting the introduction of new models across ICE and EV powertrains.”
