South Korean car company Kia is preparing to expand its manufacturing network in India. The company will set up a new manufacturing plant in Andhra Pradesh with an investment of about $ 2 billion (about Rs 16,000 crore). This project is expected to create about 12,000 new jobs. With this, Kia’s annual production capacity in India will increase to 6.30 lakh units.
Kia India Managing Director and CEO Guanggu Lee announced this investment at the CII Partnership Summit on Thursday. He said, ‘I am very happy to announce that Kia is expanding its presence by setting up another manufacturing plant in Andhra Pradesh.’
However, the company has not yet told when the construction of the new plant will start and when the production of vehicles will start in it.
Kia plant already exists in Anantapur
Kia India already has a manufacturing plant in Anantapur, Andhra Pradesh. It was established in 2017 and production started here in 2019. The annual production capacity of this plant is about 4.30 lakh units.
According to the company, Kia India produced a total of 3.17 lakh vehicles in the financial year 2026. Of these, 2.89 lakh units were sent to the domestic market, while 27,953 units were exported.
After the commencement of the new plant, the total annual production capacity of the company is expected to reach 6.30 lakh units. This can help the company in meeting the demand of the domestic market and also in increasing exports.
Auto component companies will also invest in Andhra Pradesh
Along with Kia’s new plant, other companies related to the automobile sector are also preparing to invest in Andhra Pradesh. According to reports, in November, three South Korean auto component companies have committed to invest a total of Rs 1,614 crore in the state.
These companies supply parts to major auto companies like Hyundai and Kia. Hwashin, Seoyon and Evamet have signed an agreement with the Andhra Pradesh government to set up manufacturing units in Anantapur district.
The details of the proposed investment of these three companies are as follows:
- Huashin: Investment of Rs 850 crore
- Zion: Investment of Rs 514 crore
- Evamet: Investment of Rs 250 crore
These projects are expected to create more than 1,400 employment opportunities. With this, the network of companies manufacturing automobiles and auto components in Anantapur can be strengthened.
Why is this investment important for the automobile sector?
Kia’s new plant and investment by auto component companies is expected to strengthen the automobile manufacturing ecosystem in Andhra Pradesh. With the new plant, demand for supply chain, logistics, auto parts and skilled employees may increase.
This will not only increase the production of vehicles, but small and big industries related to it can also get new business opportunities. The increasing interest of South Korean companies can be an important step towards establishing Andhra Pradesh as India’s emerging automobile manufacturing hub.
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Source: ndtv.in
