New Delhi, November 2026 : South Korean automobile manufacturer Kia India on Thursday announced an investment of $2 billion to establish a new manufacturing facility in Andhra Pradesh, significantly expanding its production capacity and strengthening its presence in India's automobile industry.
The announcement was made by Kia India at the CII Partnership Summit in Visakhapatnam. Lee said the company was delighted to expand its presence in the state through an additional manufacturing plant. The proposed facility is expected to create around 12,000 jobs and raise Kia India's annual production capacity to 6.3 lakh vehicles.
Kia India currently operates a manufacturing plant in Anantapur district, which was established in 2017 and commenced operations in 2019. The facility has an annual production capacity of 4.3 lakh units and serves both the domestic automobile market and export destinations.
However, the company has not disclosed a timeline for the proposed $2 billion investment or indicated when the new facility will become operational.
During financial year 2026, Kia India produced 3.17 lakh vehicles. Of these, 2.89 lakh units were dispatched to the domestic market, while 27,953 vehicles were exported. The additional manufacturing capacity is expected to support the company's future production requirements and strengthen its position in the Indian passenger vehicle market.
The investment is also expected to give a boost to Andhra Pradesh's automobile manufacturing ecosystem by creating opportunities for auto component suppliers, logistics companies and other ancillary industries. It could further encourage skill development and employment generation in the region.
Andhra Pradesh Attracts Rs 1,614 Crore Auto Component Investments
Kia's announcement comes amid a series of fresh investment commitments by South Korean auto component suppliers in Andhra Pradesh. Earlier in November, the state secured investment proposals worth Rs 1,614 crore from three companies supplying components to South Korean automobile majors Hyundai and Kia.
Hwashin, Seoyon and Iwamet signed agreements with the Andhra Pradesh government to establish manufacturing facilities in Anantapur district. The projects are collectively expected to generate approximately 1,418 jobs, strengthening the district's emergence as an automobile and auto-components manufacturing hub.
Among the three companies, one has committed to investing Rs 850 crore, while the other two have proposed investments of Rs 514 crore and Rs 250 crore, respectively.
The investment commitments followed Andhra Pradesh Minister for IT, Electronics and Human Resource Development Nara Lokesh's visit to South Korea in July. During the visit, he held discussions with companies associated with the global supply chains of Hyundai and Kia.
With Kia's proposed $2 billion investment and the additional commitments from component manufacturers, Andhra Pradesh is seeking to strengthen its position as a major destination for automobile manufacturing, exports and automotive supply-chain investments.
