Kia India will set up a second manufacturing plant in Andhra Pradesh with an investment of about $2 billion (around Rs 17,000 crore), creating roughly 12,000 jobs.
The expansion will raise the carmaker's annual production capacity in India from 4.3 lakh to 6.3 lakh vehicles, according to the company.
Announced At The CII Summit
Kia India managing director and CEO Gwanggu Lee made the announcement at the inaugural session of the 31st CII Partnership Summit in Visakhapatnam. He said the project reflects the company's confidence in Andhra Pradesh and its long-term commitment to India.
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Lee added that Kia would further strengthen its partnership with the state government and support Andhra Pradesh's ambition to become a global manufacturing and innovation hub.
The company did not share the location or timeline for the new plant in its statement.
From First Plant To 20 Lakh Vehicles
Kia's journey in the state began in 2017 with its first plant, which Lee said was commissioned in a record 14 months. The South Korean carmaker's first India product, the Seltos SUV, reached the market in 2019.
Lee said Kia India was the fastest carmaker in the country to reach 10 lakh vehicles, achieving the milestone in four years, and to reach 20 lakh vehicles, in seven years. The existing facility currently has an annual capacity of 4.3 lakh vehicles.
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An Export Hub
The Andhra Pradesh plant has also become a major export base. Lee said more than 4.1 lakh vehicles and kits have been shipped to nearly 100 countries.
He said the facility has generated significant employment and strengthened the state's automotive ecosystem.
Beyond Manufacturing
Lee said Kia's contribution extends beyond the factory floor. The company has worked on supply-chain development and runs CSR initiatives in education, healthcare, skill development and community welfare.
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Credit To The Chief Minister
Lee credited Chief Minister N. Chandrababu Naidu for the speed at which the first plant came up, praising his commitment, dedication and proactive approach to promoting industrial growth.
He described the state as investor-friendly. The announcement is a boost for the state government at an event aimed at attracting investment.
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