Kia India to Set Up Second Manufacturing Plant in India; Plans Multi-Billion Dollar Investment
Kia India has taken a significant step to further strengthen its presence in India by announcing the establishment of its second manufacturing plant in Andhra Pradesh.
Kia and its supplier partners will collectively invest approximately $2 billion to develop this new facility. In this regard, the company has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh.
New Plant to be Built on 465 Acres
According to the company, the new manufacturing plant and its associated facilities will be developed across a 465-acre site. The project is expected to generate employment for approximately 12,000 people, providing job opportunities for the local population while also fostering industrial development in the region. Once operational, the new plant will increase Kia India’s annual production capacity by 200,000 units.
Total Annual Production to Exceed 600,000 Units
Currently, Kia operates one manufacturing plant in India, located in Anantapur, Andhra Pradesh. With the addition of the second plant, the combined annual production capacity across both facilities will exceed 600,000 units. The company has set a target of investing a total of $5 billion across both its plants, which will further bolster Kia’s manufacturing network in India. This will also enable the company to increase the supply of its vehicles to both the domestic market and international markets.
Focus on Both ICE and EV Segments
Gwanggu Lee, Managing Director and CEO of Kia India, stated that India is a crucial component of the company’s long-term development strategy. Since the commencement of operations at the Anantapur plant, Indian customers have placed their trust in Kia, which has been instrumental in the company’s growth.
He noted that the second plant will enable the company to ramp up production more rapidly to meet customer demand. Additionally, the company will gain better facilities for introducing new models in both the ICE (petrol-diesel) and EV (electric vehicle) segments.
