Kia to Invest $2 Billion in India to Ramp Up Production

Kia Corp., the South Korean automaker, has announced plans to invest $2 billion in a new manufacturing facility in India. This investment is aimed at increasing production capacity in response to the growing demand in the Indian automobile market.

The company has signed a memorandum of understanding with the government of Andhra Pradesh to establish the new plant in Anantapur, where Kia already operates a facility built in 2019. The new plant is expected to start production in early 2030 and will have an annual capacity of 200,000 vehicles, raising Kia's total production capacity in India to over 600,000 vehicles per year.

Kia's current lineup in India includes popular models such as the Seltos, Sonet, and Carnival. This investment is part of a broader strategy by Hyundai Motor Group to strengthen its presence in India, which is recognized as the world's third-largest automobile market, following China and the United States.

In October, Hyundai Motor Group announced a significant investment of $15.5 billion in India, which will be allocated between 2026 and 2032. This move underscores the group's commitment to expanding its operations in one of the fastest-growing automotive markets globally.