Kia India Announces Second Plant in Anantapur: $2 Billion (Rs 18,800 Cr) Investment Details
Kia India has officially confirmed that it will set up its second plant in Anantapur, backed by an investment of $2 billion (roughly Rs 18,800 crore). The expansion is expected to reshape the local automotive landscape by the end of this decade.
The Blueprint: Sizing Up the Expansion
Kia is already running at full capacity to meet rising demand for its current lineup. To avoid supply chain disruptions, the new facility will be built on 465 acres right alongside the existing plant.
The main objective of the new plant is to increase volume. It will add an annual capacity of 2 lakh units, raising Kia's total manufacturing capacity from 4.30 lakh to 6.30 lakh vehicles per year, an increase of about 47%.
The facility will also handle the complete manufacturing process, with dedicated lines for stamping, welding, painting and final assembly.
| Feature | Existing Anantapur Plant | Upcoming Second Plant |
|---|---|---|
| Annual Capacity | 4.30 lakh units | 2 lakh units |
| Footprint | 945 acres | 465 acres |
| Total Jobs (Approx.) | 24,237 | 12,000 |
| Expected Production Start | Currently active | Early 2030 |
What Does This Mean for New Hybrid and EV Cars?
As the industry moves towards hybrid and electric powertrains, Kia wants the new plant to be ready for everything. The facility will be designed to build both internal combustion engine (ICE) vehicles and new electric vehicle (EV) powertrains.
Kia has aggressive electrification plans for India and is expected to launch around 8 electric vehicles by the end of this decade.
The Seltos Hybrid is slated for launch in 2027, followed closely by hybrid variants of the Sonet and Carens by 2029. Kia has also confirmed that it will locally produce small electric SUVs by 2029, timed to benefit from the new plant, which will be operational in early 2030.
Driving the Local Economy Forward
Kia's Rs 18,800 crore investment will boost the local economy, with the new project expected to generate 12,000 direct and indirect jobs in Andhra Pradesh.
