Kia India, along with its supplier partners, will invest US$ 2 billion to establish its second manufacturing facility in Andhra Pradesh, taking its combined annual production capacity to 630,000 vehicles.

The company has signed a memorandum of understanding (MoU) with the Andhra Pradesh government for the proposed facility, according to an official company announcement made on November 12th. The announcement follows an earlier report by a local daily, which had reported on Kia India's plans to evaluate an additional production line at its existing Anantapur facility.

The proposed manufacturing facility will be spread across 465 acres, including land allocated to Kia and its supplier partners. Production is scheduled to begin in early 2030. According to the company, the project is expected to generate approximately 12,000 additional direct and indirect job opportunities.

The new plant will support the production of additional models across internal combustion engine (ICE) and electric vehicle (EV) powertrains, enabling Kia India to expand its product portfolio and serve both domestic and overseas markets.

With the second facility, the company's total annual manufacturing capacity in India will increase from the existing capacity at Anantapur to 630,000 vehicles.

Kia India established its Anantapur manufacturing facility in 2017. The company and its supplier partners have invested approximately US$ 2.9 billion in the existing plant. With the proposed US$ 2 billion expansion, the cumulative investment across both facilities will reach around US$ 5 billion.

The announcement was made by Gwanggu Lee, managing director and CEO of Kia India, at the CII Partnership Summit on November 12th. Lee said the second plant would strengthen the company's ability to introduce new models across ICE and EV powertrains and cater to demand in domestic and international markets.