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Kia’s proposed manufacturing facility will increase its annual production capacity in India to 630,000 vehicles from 430,000, as global automakers ramp up investments in the world’s third-largest car market.
South Korean automaker Kia’s Indian subsidiary plans to invest around $2 billion to establish an additional manufacturing plant in Andhra Pradesh, a move expected to create approximately 12,000 jobs and significantly expand its production capacity in the country.
Kia India Managing Director and CEO Gwanggu Lee announced the proposed investment on Thursday at the Confederation of Indian Industry’s Partnership Summit in Visakhapatnam.
The new facility is expected to increase Kia India’s annual production capacity to 630,000 vehicles from the existing 430,000 units, representing an expansion of nearly 47 per cent. However, the company has not disclosed a timeline for setting up the plant or commencing production.
The proposed investment comes as India, the world’s third-largest automobile market, emerges as a key manufacturing destination for global automakers seeking to capitalise on rising domestic demand and expand their export operations.
Several international carmakers have announced ambitious investment plans in India. Hyundai Motor Group said in October it would invest $15.5 billion in the country through 2032. Japan’s Suzuki Motor, the majority owner of Maruti Suzuki, outlined plans in 2025 to invest around $8 billion in India.
More from BusinessToyota and Honda have also signalled plans to expand their manufacturing presence in the country as automakers increasingly look to India as an alternative production hub.
Kia has had a manufacturing presence in Andhra Pradesh since 2019. The company signed an agreement with the state government in 2017 and began mass production at its Anantapur facility in August 2019.
The existing plant manufactures popular models, including the Seltos and Sonet, catering to both domestic customers and export markets.
The proposed investment would further strengthen Kia’s manufacturing footprint in India and reinforce Andhra Pradesh’s position as an emerging automotive manufacturing hub.
