Visakhapatnam, November 12, 2026 (Yes Punjab News)
Kia India on Thursday announced plans to invest $2 billion in a new manufacturing facility in Andhra Pradesh, a move expected to raise the automaker’s annual production capacity to 6.3 lakh vehicles and generate around 12,000 jobs.
The announcement was made by Kia India at the CII Partnership Summit in Visakhapatnam, where the company confirmed its plans to expand its manufacturing presence in the state through an additional plant.
The proposed facility will increase Kia India’s annual production capacity from its existing 4.3 lakh units to 6.3 lakh units. However, the company has not yet disclosed the project’s implementation timeline or when the additional capacity is expected to become operational.
Kia already operates a manufacturing plant in Anantapur district, which was established in 2017 and commenced operations in 2019. The facility has played a key role in the company’s India operations, catering to both domestic demand and exports.
In the financial year 2026, Kia India produced 3.17 lakh vehicles, dispatched 2.89 lakh units in the domestic market and exported 27,953 vehicles.
The fresh investment is expected to strengthen Andhra Pradesh’s automobile manufacturing ecosystem, including its auto-component supply chain, logistics network and skilled workforce.
The announcement follows investment commitments worth Rs 1,614 crore from three South Korean auto-component suppliers — Hwashin, Seoyon and Iwamet — which have signed agreements with the Andhra Pradesh government to establish manufacturing facilities in Anantapur district.
The three projects are expected to generate around 1,418 jobs, further strengthening the district’s position as an emerging automobile and auto-components hub.
The investment commitments followed Andhra Pradesh Minister for IT, Electronics and Human Resource Development Nara Lokesh’s visit to South Korea in July, where he held discussions with companies connected to the global supply chains of Hyundai and Kia.
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