Kia Plans ₹14,167 Crore Investment to Expand Andhra Pradesh Manufacturing Plant

South Korean automaker Kia is planning a major expansion of its manufacturing operations in Andhra Pradesh, with a proposed investment of approximately ₹14,167 crore to increase production capacity at its Anantapur facility. The expansion could raise the plant’s annual manufacturing capacity from 3 lakh vehicles to 5 lakh units.

The proposed investment of $1.5 billion is expected to support the installation of an additional production line at the existing manufacturing facility. The development would give Kia greater flexibility to manufacture new models and accommodate different powertrain technologies as competition intensifies in India’s passenger vehicle market.

The Anantapur plant currently has an installed annual production capacity of around 3 lakh vehicles. If the proposed expansion proceeds as planned, the additional capacity could take the facility’s potential output to 5 lakh vehicles annually.

Reports indicate that Kia may formally announce the investment proposal at the Andhra Pradesh Investor Summit scheduled to take place in Visakhapatnam. The company is also expected to sign a memorandum of understanding with the state government. However, Kia has not officially confirmed the investment details or expansion schedule.

Responding to queries, Kia India said it continues to monitor market demand and expand its product portfolio to address changing customer preferences across vehicle segments and powertrain technologies.

The proposed expansion also aligns with Hyundai Motor Group’s broader strategy to strengthen its manufacturing presence in India and develop the country as an important production and export base.

Kia is targeting annual sales of approximately 4.1 lakh vehicles in India by 2030 and aims to increase its market share to 7.6%. The company plans to offer 10 models in the Indian market by the end of the decade, covering petrol, diesel, electric, hybrid and factory-fitted CNG technologies.

The investment proposal comes amid growing activity among automotive component manufacturers in Andhra Pradesh. Three South Korean automotive suppliers have reportedly signed investment agreements with the state government, potentially strengthening the component manufacturing network around Anantapur.

Kia entered India in 2019 with the launch of the Seltos SUV. Since then, the company has expanded its product portfolio and manufacturing presence in the country.

If implemented, the proposed ₹14,167 crore expansion would represent a significant addition to Andhra Pradesh’s automotive manufacturing ecosystem. Beyond increasing vehicle output, the investment could create opportunities for component suppliers, logistics operators and other industrial businesses supporting the automotive sector.