Kia Plans Second India Plant to Add 2 Lakh Cars a Year From 2030
Kia and its suppliers will invest $2 billion at Anantapur, taking Kia India's yearly capacity past 6 lakh vehicles and creating about 12,000 jobs.
Kia and the Andhra Pradesh government have signed a memorandum of understanding for a second India plant at Anantapur, where Kia's first factory began mass production in August 2019. Kia and its supplier partners will put $2 billion into the project, the carmaker said on 12 November.
The new factory will add capacity for 2,00,000 vehicles a year, with production planned to start in early 2030. Kia expects it to create about 12,000 direct and indirect jobs on 465 acres that it will share with its suppliers.
Together with the $2.9 billion that Kia and its suppliers spent on the first plant, their investment at Anantapur will come close to $5 billion.
Capacity Will Pass 6 Lakh a Year
Kia's statement puts the existing plant's output at up to 4,30,000 vehicles a year, so the two factories together will be able to build more than 6,00,000. Kia India's own release of 1 November gave the first plant an installed capacity of 4,00,000.
| Plant detail | First plant | Second plant |
|---|---|---|
| Yearly capacity | 4,30,000 vehicles | 2,00,000 vehicles |
| Investment by Kia and suppliers | $2.9 billion | $2 billion |
| Land shared with suppliers | 945 acres | 465 acres |
| Direct and indirect jobs | About 24,000 | About 12,000 expected |
| Start of production | August 2019 | Early 2030, planned |
| Manufacturing stages | Stamping, welding, painting, assembly | Stamping, welding, painting, assembly |
No Models Named Yet
Kia has not said which cars the new plant will make. It said the extra capacity would let it meet demand faster and bring in new combustion engine and electric models.
Kia's current India lineup includes the Sonet, Syros and Seltos SUVs, the Carens and Carens Clavis MPVs, and the larger Carnival and Sorento. Kia India's chief executive, Gwanggu Lee, said the second factory would help Kia serve buyers in India and overseas.
Sales Running Ahead of 2025
The announcement follows two record sales months in a row for Kia India. Its October wholesales of 33,462 beat September's 32,017, and its January to October total of 2,86,470 has already passed the 2,80,286 it recorded for the whole of 2025.
Kia's statement also noted that Hyundai Motor Group, which includes Kia, committed in October to invest $15.5 billion in India between 2026 and 2032.
The first plant went into mass production a little over two years after its April 2017 agreement. The second is planned to take more than three years, and Kia has not given a date for construction to begin.