Kia India To Invest $2 Billion, Expand Production Capacity To 6.2 Lakh
Kia India has announced plans to invest $2 billion in Andhra Pradesh and increase its annual vehicle production capacity to 6.2 lakh units. The announcement was made by Managing Director and CEO Gwanggu Lee at the CII Partnership Summit in Visakhapatnam on November 12, 2026.
The proposed investment is expected to strengthen Kia’s manufacturing operations in India and expand its ability to cater to both domestic and international markets. Lee highlighted the role of government-industry partnerships in developing a competitive manufacturing ecosystem, citing Kia’s operations in Andhra Pradesh as an example.
Kia established its Indian manufacturing facility in Anantapur district after signing an agreement with the Andhra Pradesh government in April 2017. The company commenced mass production at the facility in August 2019, marking its entry into local manufacturing.
The proposed capacity expansion would represent a significant increase in the plant’s manufacturing capabilities. Kia currently exports around 1.4 lakh vehicles annually from India, and the additional capacity is expected to support its international operations as well.
According to Lee, the proposed expansion will also generate approximately 3,000 additional jobs, providing a boost to employment and industrial activity in the region.
The announcement comes as Andhra Pradesh steps up efforts to attract investments across sectors. The two-day CII Partnership Summit in Visakhapatnam is expected to see the state sign 115 memorandums of understanding (MoUs) involving proposed investments worth over Rs 10 lakh crore.
While the proposed investment and capacity expansion signal Kia’s long-term manufacturing ambitions in India, further details regarding the investment timeline, capacity ramp-up and implementation schedule have not yet been specified.
