Kia, suppliers plan $2 billion investment in second plant in Andhra Pradesh, targets 2030 production kickoff

Kia Motors and a group of its component suppliers have signed a memorandum of understanding with the Andhra Pradesh government to build a second manufacturing plant in the state, with an investment of roughly $2 billion. The new facility is slated to begin production by 2030 and is expected to generate about 12,000 direct and indirect jobs across the supply chain. Officials said the plant will focus on assembling both passenger vehicles and commercial models, leveraging the existing industrial infrastructure in the region.

Andhra Pradesh has positioned itself as a hub for automotive manufacturing, offering land at competitive rates, robust logistics networks and a skilled workforce trained through state-run technical institutes. The state’s industrial policy encourages foreign direct investment and aims to create clusters where vehicle makers and parts suppliers can operate in close proximity, reducing transportation costs and improving supply chain efficiency. Kia’s decision to expand in the region follows similar moves by other global automakers who have set up plants in the state over the past decade.

For Indian readers, the project matters because it adds to the country’s goal of increasing domestic vehicle production and reducing reliance on imports, especially as the government pushes for greater adoption of electric and hybrid models. The creation of 12,000 jobs will boost employment in a state that has been seeking to diversify its economy beyond agriculture, while also stimulating ancillary industries such as logistics, tooling and component design. Observers will be watching whether Kia can meet its 2030 production target and how the plant integrates with the nation’s broader automotive strategy.