Kia's New India Plant to Make Petrol and Electric Cars From 2030
Kia's second India plant will begin production in early 2030. New facility will manufacture petrol and electric vehicles. Annual production capacity will increase by 2 lakh units.
Kia is preparing to expand its manufacturing operations in India with a second production plant in Andhra Pradesh. The South Korean carmaker has signed a Memorandum of Understanding (MoU) with the state government to set up the new facility in Anantapur, where its existing factory is also located. Kia and its supplier partners will invest USD 2 billion (around Rs 18,750 crore) in the project. Vehicle production is scheduled to begin in early 2030. The new plant will manufacture both petrol-powered and electric vehicles, helping the company increase its production capacity and prepare for future model launches.
Kia's Second India Plant to Have 2 Lakh Unit Capacity
The upcoming manufacturing facility will have an annual production capacity of 2 lakh vehicles. Once operational, it will take Kia's total production capacity in India from the current 4.3 lakh units to 6.3 lakh units per year. The new plant will be spread across 465 acres, with additional facilities planned for supplier partners. Its manufacturing operations will include vehicle stamping, welding, painting and final assembly. The additional capacity will support vehicles for both domestic sales and exports. However, Kia has not yet revealed which specific models will be manufactured at the new facility.
Also Read: Hyundai's New Creta, Electric SUV and 3-Row Hybrid: 5 Upcoming Models
New Kia Plant to Manufacture ICE and Electric Cars
Unlike a facility dedicated to a single powertrain type, Kia's second India plant will manufacture both internal combustion engine (ICE) vehicles and battery electric vehicles (EVs). This will give the company more flexibility as it prepares to introduce new models in India and expand its electric vehicle portfolio. The facility will also support Kia's export plans, although the company has not shared details about the models or production mix. The project is expected to generate around 12,000 direct and indirect employment opportunities in Andhra Pradesh.
Kia's Existing Anantapur Plant
Kia's first manufacturing facility in India became operational in Anantapur in 2019. Spread across 945 acres, the existing plant has an annual production capacity of 4.3 lakh vehicles. The company has invested around USD 2.9 billion in this facility. It currently manufactures several models, including the Seltos, Sonet, Syros, Carens, Carens Clavis, Carnival and Sorento. The existing manufacturing complex supports different powertrain options across its vehicle range, including petrol, diesel, CNG, hybrid and electric vehicles.
Kia's Total India Investment to Reach Nearly Rs 47,000 Crore
With the new facility, Kia's total investment across its two manufacturing plants in India will reach nearly USD 5 billion (around Rs 46,875 crore). The two facilities will cover a combined area of 1,410 acres and offer a total annual production capacity of 6.3 lakh vehicles. The existing plant currently supports 24,237 direct and indirect jobs, while the second facility is expected to create around 12,000 more. This could take the combined employment opportunities associated with both plants to more than 36,000.
Commenting on the development, Gwanggu Lee, Managing Director and CEO of Kia India, said the second plant would strengthen the company's ability to respond to customer demand and support the introduction of new models across ICE and EV powertrains.
Also Read: 6 New Hybrid and Electric 7-Seater SUVs Coming to India
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