Kia plans $2 billion Anantapur factory

Kia India and its suppliers plan to invest $2 billion in a second manufacturing facility at Anantapur, Andhra Pradesh, adding 200,000 vehicles of annual capacity, the company said. The project is expected to lift Kia India’s combined capacity across its two plants to 630,000 units a year.

The automaker said the proposed facility and supplier operations will cover 465 acres and are expected to create about 12,000 direct and indirect jobs. Kia India has signed a memorandum of understanding with the Andhra Pradesh government to support the expansion. The announcement describes a planned investment; it does not establish that construction has begun or that the projected jobs have been created.

Kia said the new plant is scheduled to begin operations in early 2030. It is intended to produce vehicles with internal-combustion engines as well as battery-powered models. Managing Director and CEO Gwanggu Lee said the second plant would strengthen the company’s ability to respond to demand and support the introduction of new models across both powertrains.

The expansion comes as Kia’s existing Anantapur plant, which has annual capacity of 430,000 units, is operating at or near full capacity,...