Kia’s planned $2bn investment in a new Indian manufacturing plant could create 12,000 jobs and strengthen the country’s position in the global automotive industry.
The South Korean carmaker is expanding its manufacturing footprint in Andhra Pradesh as India attracts more investment from international automotive companies.
The proposed facility will produce vehicles powered by petrol engines and electric motors. Production is expected to begin in early 2030, adding 200,000 vehicles to Kia’s annual production capacity in India.
The investment also highlights India’s growing importance as a manufacturing and export destination for the global automotive industry.
Kia’s expansion will increase production capacity
The new plant will be located in Anantapur, Andhra Pradesh, where Kia already operates an existing manufacturing facility.
The proposed factory will cover approximately 465 acres, including land allocated to automotive component suppliers. It will manufacture vehicles powered by internal combustion engines and electric motors.
Kia currently has an annual production capacity of 430,000 vehicles in India. The additional 200,000 units will increase its potential annual capacity to approximately 630,000 vehicles.
The company expects the investment to create around 12,000 direct and indirect jobs. These opportunities could benefit manufacturing workers, engineers, logistics operators and businesses supplying automotive components.
Kia’s combined investment across its two Indian facilities, including supplier investments, is expected to reach approximately $5bn.
India strengthens its position in global automotive manufacturing
The investment comes as international carmakers increase their presence in India, the world’s third-largest automotive market.
India has become an increasingly important destination for manufacturers seeking access to a large domestic market and opportunities to export vehicles internationally.
Kia is not alone in expanding its Indian operations. Suzuki announced plans in 2025 to invest approximately $8bn in the country over five to six years.
Toyota and Honda have also committed to expanding their manufacturing operations in India.
Kia began mass production at its existing Anantapur facility in August 2019. The factory produces models including the Seltos and Sonet for domestic customers and export markets.
The latest investment signals the company’s long-term commitment to India. It also demonstrates how competition for automotive manufacturing investment is increasing across major emerging markets.
For India, the potential benefits extend beyond vehicle production. The expansion could strengthen local supply chains, create employment and increase opportunities for domestic automotive component manufacturers.
However, the longer-term impact will depend on how much local expertise, technology and supplier capacity the project develops.
Read also: UK proposes tougher battery certification rules covering cybersecurity and factory inspections
