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Amaravati
South Korean automobile manufacturer Kia plans to invest $1.5 billion (approximately Rs 14,167 crore) in Andhra Pradesh to expand its manufacturing operations, strengthening its presence in India’s growing automobile market. The proposed expansion at its Anantapur facility is expected to increase the plant’s annual production capacity from 3 lakh vehicles to nearly 5 lakh units.
The expansion could include the addition of a new production line, allowing the company to manufacture more models and accommodate different powertrain technologies. Kia is expected to formally announce the investment at the Andhra Pradesh Investor Summit in Visakhapatnam next week, where a memorandum of understanding (MoU) may also be signed.
The proposed investment is likely to give a boost to industrial development in Anantapur and surrounding areas. It could create employment opportunities, attract more automobile component manufacturers and support the growth of local businesses. Three South Korean automobile component manufacturers have already signed MoUs with the Andhra Pradesh government, indicating a growing interest in the state’s automotive sector.
The expansion comes as Kia plans to strengthen its position in the Indian market through a wider product portfolio. The company aims to introduce 10 models in India by 2030, including new SUVs, and expand its offerings across petrol, diesel, electric, hybrid and factory-fitted CNG vehicles.
Kia has also set a target of selling around 4.1 lakh vehicles annually in India by 2030 and increasing its market share to 7.6%.
Since entering the Indian market in 2019 with the launch of the Seltos SUV, Kia has steadily expanded its presence. The proposed investment further strengthens Andhra Pradesh’s position as an emerging automobile manufacturing hub and could support the state’s efforts to attract large-scale industrial investments.