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Kia evaluates capacity expansion in India, new models in pipeline
Autocar Professional, 17 August '26Headlines 17 August '26
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Kia India is evaluating a new production line at its Anantapur plant in Andhra Pradesh that could add around 200,000 units of annual capacity, as the South Korean carmaker prepares for a major expansion of its product portfolio and targets significantly higher sales by 2030.
The proposal remains at an early stage, with a final investment decision yet to be taken. People familiar with the development told reporters that Kia has already sounded out its supplier ecosystem as part of the initial assessment. If approved, the additional line would increase the Anantapur plant's potential annual capacity from around 300,000 to approximately 500,000 units.
The capacity study comes as Kia's Indian business gains momentum and the company prepares to introduce new models and a wider range of powertrains, including hybrids, CNG and electric vehicles. The additional manufacturing capacity would give Kia greater flexibility to accommodate these products and their different architectures and powertrain combinations.
Capacity expansion to support growth
Kia has previously adjusted production at Anantapur between two- and three-shift operations depending on market demand. The proposed new line would provide additional headroom as the company seeks to increase volumes, although its implementation will depend on demand visibility and utilisation of the existing facility.
Kia is targeting domestic sales of around 410,000 units and a market share of 7.6% by 2030. It also plans to expand its sales and service network to approximately 800 touchpoints.
The sales target is around 52% higher than Kia's previous domestic peak of approximately 270,000 units. Including exports, the company's total production requirement could eventually approach half a million vehicles annually, making additional manufacturing capacity increasingly important.
Kia grew by around 13% in the last financial year, ahead of the Indian passenger vehicle market's approximately 8% growth. The recovery has been supported by the Seltos and Sonet, while changes to the positioning of the Syros have also contributed to the company's performance.
The latest Seltos has been particularly important to Kia's recent momentum, averaging around 10,000 units a month since launch, according to the company. Monthly volumes are understood to have reached around 10,000-12,000 units. The Sonet remains another major contributor, recording sales of around 115,000 units in the last financial year.
Responding to queries from reporters, a Kia India spokesperson did not comment specifically on the proposed production line but highlighted the company's strong performance and said operations would be scaled in response to market demand.
"Kia India continues to see strong momentum across our portfolio, with the all-new Seltos averaging around 10,000 units a month since launch, which is a clear reflection of the trust our customers continue to place in us," the spokesperson said.
"We remain closely attuned to market response and evolving customer demand, and this continues to guide how we think about our portfolio and our plans here. India remains a strategic market for Kia globally, as it has been since we entered, and we will continue to scale our operations in line with the market's growth and our customers' evolving needs."
New SUVs to fill portfolio gaps
The proposed capacity expansion is being considered alongside a significant widening of Kia's Indian product range. The company is working on a B-segment SUV for India in 2028, which is expected to be positioned between the Syros and Seltos and is likely to be offered as an electric vehicle.
The model would occupy the space created as the next-generation Seltos grows in size, positioning and price, giving Kia another offering above the sub-four-metre Syros without significantly overlapping with the Seltos. It would also strengthen Kia's presence in the mass-market electric vehicle segment, where competition from Hyundai, Maruti Suzuki, Tata Motors and Mahindra is expected to intensify.
Kia is separately evaluating a C-segment utility vehicle to bridge the gap between the Seltos and the upcoming Sorento. The programme remains at an early stage, with the company yet to decide whether it will take the form of an SUV or an MPV.
An SUV would give Kia a more direct presence above the Seltos, while an MPV or SUV-MPV crossover could build on the company's experience with the Carens and Carnival. Either format would allow Kia to target customers seeking additional cabin space or three-row seating without moving directly into the premium price range of the Sorento.
The two products would allow Kia to address additional price points and reduce gaps in its portfolio, placing new models on either side of the Seltos, which remains central to its Indian operations.
Expanding powertrain range
Kia is also preparing to broaden its powertrain range as Indian buyers increasingly consider CNG, hybrid and electric vehicles alongside conventional petrol and diesel models.
A hybrid version of the Seltos is expected in 2027, while the upcoming Sorento is likely to spearhead Kia's hybrid strategy with a 1.6-litre turbo-petrol strong-hybrid powertrain alongside diesel. The Carnival is also expected to gain a hybrid option while retaining its diesel engine.
Kia is expected to enter the CNG market through the Carens, although it is likely to adopt a selective strategy rather than offer CNG across its entire portfolio. Its electric vehicle range will also expand as part of a broader electrification programme.
The company has indicated that eight of the 10 models it plans to introduce from 2026 will feature some form of electrification. The resulting increase in the number of powertrain and vehicle combinations will add manufacturing complexity, making additional capacity at Anantapur potentially important to Kia's longer-term plans.
The proposed new production line, therefore, is closely linked to Kia's wider strategy for India. By combining greater manufacturing capacity with new SUVs, a broader range of powertrains and an expanded sales and service network, the company is positioning itself to address more segments and move towards its 2030 sales and market-share targets.
The proposal remains at an early stage, with a final investment decision yet to be taken. People familiar with the development told reporters that Kia has already sounded out its supplier ecosystem as part of the initial assessment. If approved, the additional line would increase the Anantapur plant's potential annual capacity from around 300,000 to approximately 500,000 units.
The capacity study comes as Kia's Indian business gains momentum and the company prepares to introduce new models and a wider range of powertrains, including hybrids, CNG and electric vehicles. The additional manufacturing capacity would give Kia greater flexibility to accommodate these products and their different architectures and powertrain combinations.
Capacity expansion to support growth
Kia has previously adjusted production at Anantapur between two- and three-shift operations depending on market demand. The proposed new line would provide additional headroom as the company seeks to increase volumes, although its implementation will depend on demand visibility and utilisation of the existing facility.
Kia is targeting domestic sales of around 410,000 units and a market share of 7.6% by 2030. It also plans to expand its sales and service network to approximately 800 touchpoints.
The sales target is around 52% higher than Kia's previous domestic peak of approximately 270,000 units. Including exports, the company's total production requirement could eventually approach half a million vehicles annually, making additional manufacturing capacity increasingly important.
Kia grew by around 13% in the last financial year, ahead of the Indian passenger vehicle market's approximately 8% growth. The recovery has been supported by the Seltos and Sonet, while changes to the positioning of the Syros have also contributed to the company's performance.
The latest Seltos has been particularly important to Kia's recent momentum, averaging around 10,000 units a month since launch, according to the company. Monthly volumes are understood to have reached around 10,000-12,000 units. The Sonet remains another major contributor, recording sales of around 115,000 units in the last financial year.
Responding to queries from reporters, a Kia India spokesperson did not comment specifically on the proposed production line but highlighted the company's strong performance and said operations would be scaled in response to market demand.
"Kia India continues to see strong momentum across our portfolio, with the all-new Seltos averaging around 10,000 units a month since launch, which is a clear reflection of the trust our customers continue to place in us," the spokesperson said.
"We remain closely attuned to market response and evolving customer demand, and this continues to guide how we think about our portfolio and our plans here. India remains a strategic market for Kia globally, as it has been since we entered, and we will continue to scale our operations in line with the market's growth and our customers' evolving needs."
New SUVs to fill portfolio gaps
The proposed capacity expansion is being considered alongside a significant widening of Kia's Indian product range. The company is working on a B-segment SUV for India in 2028, which is expected to be positioned between the Syros and Seltos and is likely to be offered as an electric vehicle.
The model would occupy the space created as the next-generation Seltos grows in size, positioning and price, giving Kia another offering above the sub-four-metre Syros without significantly overlapping with the Seltos. It would also strengthen Kia's presence in the mass-market electric vehicle segment, where competition from Hyundai, Maruti Suzuki, Tata Motors and Mahindra is expected to intensify.
Kia is separately evaluating a C-segment utility vehicle to bridge the gap between the Seltos and the upcoming Sorento. The programme remains at an early stage, with the company yet to decide whether it will take the form of an SUV or an MPV.
An SUV would give Kia a more direct presence above the Seltos, while an MPV or SUV-MPV crossover could build on the company's experience with the Carens and Carnival. Either format would allow Kia to target customers seeking additional cabin space or three-row seating without moving directly into the premium price range of the Sorento.
The two products would allow Kia to address additional price points and reduce gaps in its portfolio, placing new models on either side of the Seltos, which remains central to its Indian operations.
Expanding powertrain range
Kia is also preparing to broaden its powertrain range as Indian buyers increasingly consider CNG, hybrid and electric vehicles alongside conventional petrol and diesel models.
A hybrid version of the Seltos is expected in 2027, while the upcoming Sorento is likely to spearhead Kia's hybrid strategy with a 1.6-litre turbo-petrol strong-hybrid powertrain alongside diesel. The Carnival is also expected to gain a hybrid option while retaining its diesel engine.
Kia is expected to enter the CNG market through the Carens, although it is likely to adopt a selective strategy rather than offer CNG across its entire portfolio. Its electric vehicle range will also expand as part of a broader electrification programme.
The company has indicated that eight of the 10 models it plans to introduce from 2026 will feature some form of electrification. The resulting increase in the number of powertrain and vehicle combinations will add manufacturing complexity, making additional capacity at Anantapur potentially important to Kia's longer-term plans.
The proposed new production line, therefore, is closely linked to Kia's wider strategy for India. By combining greater manufacturing capacity with new SUVs, a broader range of powertrains and an expanded sales and service network, the company is positioning itself to address more segments and move towards its 2030 sales and market-share targets.