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Kia to invest $2 bn in new Andhra plant, boost annual car production to 6.3 lakh

By · Via Times of India · Published by Everything Blog

In short

Kia India announced the capital injection during the CII Partnership Summit to set up its second manufacturing base in the region. The expansion will increase overall annual manufacturing capacity by 2 lakh units beyond the current Anantapur facility. In addition to expanding battery-electric and conventional vehicle lines, the company plans to introduce hybrid models and enter the CNG segment with the Carens.

Key points

  • The planned industrial expansion is projected to generate roughly 12,000 new jobs in the…: The planned industrial expansion is projected to generate roughly 12,000 new jobs in the state of Andhra Pradesh.
  • Kia is preparing to diversify its vehicle portfolio across petrol, diesel, battery-electr…: Kia is preparing to diversify its vehicle portfolio across petrol, diesel, battery-electric, hybrid, and CNG powertrain options.
  • The automaker has not yet established an official timeline for deploying the capital inve…: The automaker has not yet established an official timeline for deploying the capital investment or launching plant operations.

Sources checked by our analysis pipeline: 1

NEW DELHI: Kia India giving a major boost to its

Andhra Pradesh manufacturing operations, with a $2 billion investment in a new plant. The proposed facility is expected to create around 12,000 jobs and take the South Korean automaker's annual production capacity to 6.3 lakh vehicles.

Kia India managing director and CEO Gwanggu Lee announced the expansion while speaking at the CII Partnership Summit on Thursday. "I am so delighted to announce the expansion of Kia's presence in Andhra Pradesh through the establishment of an additional manufacturing plant," he said.

However, the company has not specified when it plans to make the investment or when the additional production capacity will become operational.

Kia looks to ramp up production capacity to 6.3 lakh

Kia India currently has a manufacturing plant in Anantapur, Andhra Pradesh, which was set up in 2017. The facility has an annual production capacity of 4.30 lakh vehicles. The proposed new plant will increase the company's total annual capacity to 6.30 lakh units.

In financial year 2026, Kia India produced 3.17 lakh vehicles. Of these, 2.89 lakh units…

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