South Korean automaker Kia India is planning an investment of approximately $1.5 billion (around ₹13,500 crore) to expand its manufacturing operations in Andhra Pradesh. The proposed investment will strengthen the company’s production capacity at its Anantapur facility as it prepares for rising demand and a wider vehicle portfolio.
According to a report by The Economic Times, the expansion could include a new production line, increasing the plant’s potential annual capacity from around 3 lakh vehicles to approximately 5 lakh units. The formal announcement is expected at the Andhra Pradesh Investor Summit scheduled to take place in Visakhapatnam next week. Sources indicated that the company may sign a memorandum of understanding with the state government.
New Production Line at Anantapur
Kia’s manufacturing facility in Anantapur currently has an installed annual production capacity of around 3 lakh vehicles. The proposed expansion is expected to provide additional capacity and greater flexibility to manufacture new models and different powertrain combinations.
The additional production line could help Kia meet domestic demand while strengthening its manufacturing base for potential exports. The company has not officially confirmed the investment amount or detailed expansion timeline.
Kia’s Long-Term India Growth Strategy
The proposed investment comes as Kia looks to expand its presence in the Indian automobile market through new models and multiple powertrain technologies. The company is preparing to widen its portfolio across internal combustion engine, electric and hybrid vehicles.
The expansion also aligns with the broader investment plans of its parent company, Hyundai Motor Group, which announced a $15.5 billion investment commitment in India between 2026 and 2032. The group is looking to strengthen manufacturing, research and development, and next-generation automotive technologies in the country.
Kia’s proposed ₹13,500-crore investment would further strengthen Andhra Pradesh’s position as an automotive manufacturing hub and add to India’s growing automobile investment pipeline.
