Kia to invest $2 bn in new Andhra plant, boost annual car production to 6.3 lakh
Kia India has announced a $2 billion investment to build a new manufacturing plant in Andhra Pradesh. The expansion aims to increase the company's annual production capacity to 6.3 lakh vehicles to meet growing domestic and export demand.
Why it matters
This significant foreign direct investment signals strong growth in the Indian automotive sector and job creation in the manufacturing industry.
NEW DELHI: Kia India giving a major boost to its Andhra Pradesh manufacturing operations, with a $2 billion investment in a new plant. The proposed facility is expected to create around 12,000 jobs and take the South Korean automaker's annual production capacity to 6.3 lakh vehicles.Kia India managing director and CEO Gwanggu Lee announced the expansion while speaking at the CII Partnership Summit on Thursday. "I am so delighted to announce the expansion of Kia's presence in Andhra Pradesh through the establishment of an additional manufacturing plant," he said.However, the company has not specified when it plans to make the investment or when the additional production capacity will become operational.Kia looks to ramp up production capacity to 6.3 lakhKia India currently has a manufacturing plant in Anantapur, Andhra Pradesh, which was set up in 2017. The facility has an annual production capacity of 4.30 lakh vehicles.
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