Kia Corporation to Invest an Additional $2 Billion in India, Build a Second Plant

[Financial News] Kia Corporation will invest an additional $2 billion (about 2.6 trillion won) in India to establish an annual production capacity of 630,000 vehicles. It will build a second vehicle assembly plant, targeting the start of operations in early 2030, and expand its production capacity in India by about 47%. With Hyundai Motor Group set to invest $15.5 billion in India by 2032, Kia Corporation is also expanding its local production base, accelerating its push into the world’s third-largest automotive market.
According to Kia Corporation on the 13th, its India unit signed a memorandum of understanding (MOU) with the government of India’s Andhra Pradesh state on the 12th (local time) to build a second plant in the Anantapur area. The new plant is scheduled to be built with mass production targeted for early 2030 and is expected to have an annual production capacity of 200,000 vehicles.
Kia Corporation and its partner companies will jointly participate in the investment. The total investment is $2 billion, and the total area of land used by Kia Corporation and its partners amounts to 465 acres (about 1.88 million square meters). The plant is expected to create about 12,000 direct and indirect jobs.
Kia Corporation signed its first investment agreement with the Andhra Pradesh state government in April 2017 and began mass production at its Anantapur plant in August 2019. If the second plant is added to the existing facility, which currently has an annual production capacity of 430,000 vehicles, total annual production capacity in India will rise to 630,000.
The investment scale will also grow significantly. Kia Corporation and its partner companies invested $2.9 billion in the existing plant. Including the investment in the second plant, cumulative investment will amount to about $4.9 billion. The number of direct and indirect jobs generated by the existing and new plants is also expected to rise to about 36,000.
Like the existing plant, the new facility will have all the key processes needed to produce finished vehicles, including pressing, welding, painting and assembly. The strategy is to improve local production efficiency and respond flexibly to the introduction of new models.
In particular, Kia Corporation plans to use the second plant to expand its production base for electric vehicles as well as internal combustion engine vehicles. The plan is to meet diverse demand in the Indian market while also increasing exports of vehicles produced locally.
Kia Corporation currently sells a range of models in India, including the Kia Seltos, Kia Sonet, Kia Syros and Kia Carens. Once the new production facility is in place, the rollout of new models tailored to shifts in market demand and the expansion of the model lineup are also expected to gain momentum.
The investment is also linked to Hyundai Motor Group’s mid- to long-term strategy for India. Last October, Hyundai Motor Group announced plans to invest $15.5 billion in India from 2026 through 2032. Its strategy is to develop India into a key production and export hub by expanding production facilities, investing in research and development (R&D), strengthening its supply chain and securing future mobility technologies.
Lee Gwang-gu, CEO of Kia Corporation’s India unit, said, “India is a key market in Kia Corporation’s long-term growth strategy. The second plant will be an important turning point in strengthening the ability to respond more quickly and flexibly to customer demand and to introduce new internal combustion engine and electric vehicle models.”
He also stressed, “We will continue to contribute to the development of India’s automotive industry ecosystem, expand our local production base and strengthen our ability to supply both the domestic and overseas markets.”


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