Kia will invest around 1.8 billion euros in a new factory in India.
The Korean automaker Kia plans to build a second manufacturing plant in India, which, like the first factory, is set to be located in Anantapur in the state of Andhra Pradesh. The facility is expected to produce up to 200,000 vehicles per year, including both electric cars and internal combustion engine vehicles.
The Kia Carens Clavis EV has been manufactured in India since 2025.
Image: Kia
Kia aims to invest around 1.8 billion euros together with its suppliers in the new plant in India. By choosing this location, Kia wants to emphasize its belief in the growth potential of the Indian automotive market. This initiative is expected to create 12,000 new jobs for Kia, its service providers, and suppliers.
On a site covering 188 hectares—equivalent to over 250 football fields—a factory is set to be built, according to an official company statement. Like the first plant, it will support the four manufacturing steps of stamping, welding, painting, and assembly. This is intended to increase Kia’s production capacity in Anantapur from 400,000 to 600,000 vehicles per year.
Kia states that the second plant in India, now announced, is expected to begin operations in 2030. It is intended to give the manufacturer greater flexibility to respond to customer demand and support both new combustion engine models and electric vehicles.
Kia’s Growth Ambitions in India
Kia’s India head, Gwanggu Lee, said, “India plays a central role in Kia’s long-term growth ambitions, and the trust our customers have placed in us since we started operations in Anantapur has been crucial to our success. Our second plant marks a significant new chapter.”
At its existing first plant in Anantapur, Kia has been producing cars on an assembly line since August 2019, initially focusing solely on models with internal combustion engines. However, since June 2025, the facility has also begun manufacturing its first electric vehicles. Specifically, the Kia Carens Clavis EV, an electric SUV that is 4.55 meters long. In July 2026, another electric vehicle was added, the Kia Syros EV, a compact SUV measuring 3.99 meters in length.