Kia India will invest USD 2 billion (approximately Rs 17,700 crore) to establish an additional manufacturing facility in Andhra Pradesh, the company's managing director and CEO Gwanggu Lee announced at the CII Partnership Summit on Thursday, November 12, according to a PTI report.

Source: PTI via Autocar Professional

The Hindu BusinessLine also reported Lee's announcement at the 31st AP CII Partnership Summit, which began on Thursday, confirming that the South Korean automaker will set up a new manufacturing plant in Andhra Pradesh as part of its expansion plans.

Source: The Hindu BusinessLine

$2 billionAnnounced investment
Rs 17,700 croreApproximate value in rupees
6.3 lakhTotal annual capacity after expansion
12,000Jobs the new facility is expected to create

The proposed facility is expected to take Kia India's total annual production capacity to 6.3 lakh vehicles, up from the existing 4.3 lakh units, Lee said. Kia India currently operates a manufacturing plant at Anantapur in Andhra Pradesh, which was established in 2017, and Lee said its operations have been steadily expanded since then.

In FY2026, Kia India produced 3.17 lakh vehicles. Of these, 2.89 lakh units were dispatched to the domestic market, while exports stood at 27,953 units, according to the PTI report.

Timeline not yet disclosed

The company has not disclosed an investment timeline or the expected date for commencement of operations at the proposed facility, PTI reported.

The announcement makes the proposed plant one of the larger single auto-sector investment commitments announced in Andhra Pradesh this year. Further details, including the exact location and schedule of the new facility, are awaited from the company.