Kia India has confirmed it will be expanding its manufacturing facilities in India by building a new facility in Anantapur, Andhra Pradesh.
This new facility will see both internal combustion engine and EV models being produced to help expand the brands portfolio to include more petrol, diesel and EV models. Kia has signed a Memorandum of Understanding with the Andhra Pradesh government and production will begin at the new facility early 2030.
Significant Investment In Andhra Pradesh
Kia and its suppliers will be investing USD 2 Billion ($18,750 Crore) in the new manufacturing facility. This will be located in Anantapur alongside Kia’s current manufacturer facility which it started in India back in 2019.
The new facility will have an annual production capacity of 2 lakh units. This will see Kia India’s total production capacity rise to 6.3 lakh units once the facility comes online. Kia currently has a production capacity of 4.3 lakh units.
The new facility will span 465 acres with dedicated spaces for component supplier. This will create around 12,000 new jobs in the region.
New ICE & EV Models
Kia has confirmed the new facility will produce both ICE and Battery EV models. This shows Kia is looking to expand its current portfolio in India. We will see new petrol, diesel and EV models hit the market in the near future.
Having the capability to produce both ICE and EV models means Kia can adapt to any changes in demand. As the EV market in India grows, Kia can ramp up production of EV models but still provide petrol, diesel, CNG and hybrid models for those that aren’t ready to switch.
Kia currently has multiple models in its Indian portfolio. These include the Seltos, Sonet, Syros, Carens, Carens Clavis, Carnival and Sorento. These have multiple powertrain options available.
Increased Capacity To Help Domestic Sales & Export
Having the extra capacity at the new facility will help Kia with domestic sales and exporting. India has become a huge manufacturing centre for many global brands. With a second facility, Kia can increase production for export markets without affecting domestic supply.
The new facility will include stamping, welding, painting and assembly processes. This means it will be capable of producing complete vehicles.
By having dedicated space for component suppliers will help Kia build a strong local supply chain. Helping to cut down on logistics costs and give more flexibility in production. This could also help speed up new model launches.
Current Facility
Kia’s current facility spans 945 acres (with component supplier). The facility was initially founded with an investment of USD 2.9 Billion and creates 24,237 direct and indirect jobs.
The facility produces a large range of vehicles from small SUVs to luxury MPVs. It has a capacity of 4.3 lakh units and has been key to Kia’s success in India. Particularly the Seltos and Sonet models.
By having a second facility, Kia will have invested almost USD 5 Billion into India. The two facilities along with component suppliers will take up 1,410 acres.
Creating Jobs
The new facility will create around 12,000 new direct and indirect jobs. Along with the jobs already being created, Kia could create over 36,000 jobs in Andhra Pradesh.
This is a big deal for Kia and the region. Having new jobs created at the manufacturing plant, component suppliers investing and increased vehicle production will create a strong ecosystem in Andhra Pradesh.
Growth Plans For Kia India
“Our India strategy focuses on this country as a key to our long-term growth. We’ve seen great trust from customers since we began operations in Anantapur,” said Gwanggu Lee, Managing Director and CEO of Kia India.
“We’ll be able to respond to customer demand much faster with our second manufacturing plant. It will help us launch new models with both ICE and EV powertrains.”
This confirms that Kia sees India as more than just a market for sales. They are investing in local manufacturing to help with future growth, new models and export.
What Does This Mean For Customers?
Customers in India could see a larger choice of models available. With increased production, customers won’t have to wait as long for models. Having confirmation that both ICE and EV models will be produced at the new facility shows that Kia are looking to stay in India long term. Customers will see more petrol, diesel and EV options from Kia in the near future.
What Can We Expect?
Kia have not confirmed what models will be produced, however they have confirmed they will be producing new ICE and EV models. With production starting early 2030, Kia will have time to create new models and localise them. The new facility could help with new SUVs, MPVs and EV models to help Kia compete in the fast moving Indian market.
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