Andhra Pradesh-CII Partnership Summit: Kia India to invest $2 billion on capacity expansion in AP
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Kia India on Thursday announced plans to invest $2 billion on additional manufacturing line in Andhra Pradesh. The investment will more than double the total installed annual capacity of the company.
Kia India MD and CEO Gwanggu Lee today said the company will invest $2 billion taking the total installed capacity to 6.2 lakh units. "The project will create 3,000 additional jobs," said Lee at the 31st CII Partnership Summit in Vishakhapatnam.
"Our journey started in the state in 2017. Chief Minister Chandrababu Naidu has a practice approach to creating investment environment. We remain committed to sustained progress of the state of Andhra Pradesh. We look forward to deepening the partnership with the government of Andhra Pradesh," Lee said.
The company's Anantapur unit currently has an installed annual capacity of 3 lakh units. The production at the plant commenced in 2019. With the additional investment and capacity creation, the car maker will be able to create newer model lines and powertrain technologies to target growth in the competitive Indian automotive market.
Kia India registered its highest monthly wholesales in October 2026 with 33,462 units, growing 13.2% YoY. During January-October 2026, its 2.86 lakh units dispatched surpassed its entire calendar year 2025 dispatches of 2.80 lakh units. In fact, three major South Korean auto component makers, Hwashin, Seoyon, and Iwamet, have committed a combined ₹1,614 crore investment in Anantapur, strengthening Kia's regional supply chain and generating more than 1,400 jobs.
Lee said the existing plant in the state has become an export hub for the company. "The manufacturing facility is exporting 1.1 lakh units to about 100 countries," Lee said.
On the side lines of the summit, ReNew has announced an in-principle commitment to invest ₹29,500 crore in two new projects in Andhra Pradesh.
The company announced the investment during a meeting between Andhra Pradesh's HRD, IT & Electronics minister Nara Lokesh and ReNew Chairman & CEO Sumant Sinha at the CII Partnership Summit in Visakhapatnam today.
"The two projects are 2 GW pumped storage unit worth ₹12,500 crore and a green ammonia and e-fuel project worth ₹17,000 crore. Pumped storage stores power by pumping water to an upper reservoir and releasing it through turbines when demand peaks," a release from the state government said.