Kia's $2B investment in Andhra plant to create 12,000 jobs
What's the story
Kia has announced its plan to invest around $2 billion in a new manufacturing facility in Andhra Pradesh. The announcement was made by Gwanggu Lee, the Managing Director and CEO of Kia India, at the Confederation of Indian Industry's Partnership Summit in Visakhapatnam. The move is expected to create some 12,000 jobs and significantly boost Kia's production capacity in India.
Production increase
Annual production capacity to increase by nearly 47%
The new facility is expected to increase Kia India's annual production capacity from the current 430,000 units to a whopping 630,000 vehicles. That's an expansion of nearly 47%.
However, the company has not yet revealed when it plans to set up this plant or start production.
This investment comes as India continues to grow as a major manufacturing hub for global automakers.
Strategic investment
India central to Kia's long-term growth ambitions
The proposed facility will have an installed capacity of 200,000 units per annum.
This will take Kia India's annual combined capacity across both plants to over 600,000 units.
The announcement comes after signing a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh.
Lee emphasized that India is "central to Kia's long-term growth ambitions," and this new plant will help meet customer demand more quickly and flexibly.
Manufacturing footprint
Proposed facility to cover combined 465 acres
The proposed facility will be spread across a combined 465 acres for Kia and its suppliers.
It is expected to create some 12,000 more direct and indirect job opportunities.
Lee said, "As we enter our next phase of growth, we remain committed to contributing to India's automotive ecosystem and building on the strong foundation we have created here."
This investment will further strengthen Kia's manufacturing footprint in India.