Kia India to Invest $2 Billion in New AP Plant: Mega Boost for EV Manufacturing & Local Production

ANDHRA PRADESH, INDIA  In a landmark move toward accelerating India’s shift to sustainable mobility, Kia India has officially announced a approx. ₹18,750 crore investment to set up a brand-new, second manufacturing plant in Andhra Pradesh.

The new state-of-the-art facility will significantly scale Kia’s local production footprint, with a core emphasis on expanding its Electric Vehicle (EV) manufacturing ecosystem alongside existing internal combustion engine (ICE) models.

Key Highlights of Kia India’s approx. ₹18,750 crore EV Expansion

• Massive Production Boost: Adds 200,000 units of annual production capacity, taking Kia India's total output to over 6.3 lakh (630,000) units per year.
• EV-Centric Infrastructure: Purpose-built to support next-generation mass-market and premium Electric Vehicles tailored for domestic and global export markets.
• Economic Impact: Projected to generate over 12,000 direct and indirect jobs across the regional automotive supply chain.
• Operational Timeline: Commercial EV and vehicle production at the new plant is scheduled to commence around early 2030.

Accelerating India’s Electric Mobility Transition

Kia’s secondary plant layout is engineered to support dual-line manufacturing flexible enough for assembly of localized Electric Vehicles. While traditional ICE models will continue to share platform architecture during the transition phase, the primary strategic push behind this approx. ₹18,750 crore  capital expenditure targets scaling EV manufacturing capacity in India.

This investment aligns with India’s Make in India vision and EV adoption goals, establishing the Andhra Pradesh industrial corridor as a major hub for Kia’s regional green mobility strategy.

"This new investment marks a major milestone in strengthening our commitment to India. By expanding our manufacturing capability to over 6 lakh units, we are building a strong foundation for future mobility—focusing heavily on high-tech Electric Vehicles and sustainable manufacturing practices." Gwanggu Lee, Managing Director & CEO, Kia India

Localizing Next-Gen EVs for Indian & Global Markets

Currently offering high-end electric models like the EV6 and EV9 via importing channels, Kia plans to use this expansion to localize battery assembly, powertrain integration, and component sourcing for mainstream electric SUVs and crossovers tailored specifically for Indian road conditions and price points.

With enhanced capacity, Kia India will not only meet surging domestic demand for zero-emission vehicles but also position India as a key manufacturing hub for exporting Kia EVs to emerging international markets.