Korean carmaker Kia to invest $2 billion in Andhra Pradesh; 12K jobs at new factory

Kia India, the subcontinent-based entity of the Korean carmaker, has announced plans to establish an additional manufacturing plant in Andhra Pradesh with an investment of approximately $2 billion (around ₹17,000 crore). The project is expected to generate around 12,000 jobs and increase Kia India's annual production capacity from the existing 4.3 lakh to 6.3 lakh vehicles. Founded in May 2017, Kia India handles the manufacturing, sales, and distribution of Kia vehicles tailored for the Indian market. Kia has been operating a major production facility in Penukonda, Sri Sathya Sai District, Andhra Pradesh, which builds popular models like the Seltos and Sonet, exporting to over 100 nations.

Speaking at the inaugural session of the 31st CII Partnership Summit in Visakhapatnam, Kia India Managing Director and CEO Gwanggu Lee announced the new investment and expansion plans. Lee said Kia's journey in Andhra Pradesh began in 2017 with the establishment of its first manufacturing plant, which was commissioned in a record 14 months with the cooperation and support of Chief Minister N. Chandrababu Naidu. He appreciated the Chief Minister's commitment, dedication and proactive approach in promoting industrial growth and creating an investor-friendly environment in the state.

He highlighted that Kia India is among the country's leading automobile manufacturers and the fastest OEM to achieve production milestones of 1 million vehicles in four years and 2 million vehicles within seven years. The company's existing AP facility has an annual production capacity of 4.3 lakh vehicles and has emerged as a major export hub, with over 4.1 lakh vehicles and kits exported to nearly 100 countries, generating significant employment and strengthening the state's automotive ecosystem.

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He added that Kia's contribution extends beyond manufacturing through supply-chain development and CSR initiatives in education, healthcare, skill development and community welfare. "The proposed expansion reflects Kia India's strong confidence in Andhra Pradesh and its long-term commitment to India. This is our company's commitment to further strengthening our partnership with the state government and supporting Andhra Pradesh's ambition to become a global manufacturing and innovation hub," he said

Vizag hosts 31st CII Partnership Summit

The scenic coastal city of Visakhapatnam in Andhra Pradesh is hosting the 31st CII Partnership Summit, themed “Navigating New World Order”. Being held Thursday (12th Nov) and Friday (13th Nov), the investment summit is set to provide a new direction to industrial development in Andhra Pradesh in the context of the changing global economic landscape. Beyond attracting investments, the summit will facilitate extensive deliberations on a wide range of subjects, from trade to quantum technology, with a focus on translating the outcomes into actionable initiatives. Government and industry representatives from nearly 58 countries have already registered to participate in the two-day summit.

Also read: Hyundai to invest $2.5bn in India, scale up production at its largest manufacturing hub outside Korea

Andhra Chief Minister Chandrababu Naidu stated that the summit is aimed at connecting the state's industries with global markets. Discussions and agreements at the summit will aim to position Andhra Pradesh as a key destination for global investments, international trade and technology partnerships. The deliberations will focus on trade, technology, mutual trust and visionary ideas from experts, keeping in view the changing global economic order.