CM Naidu Signs $2 Billion Kia MoU for Second Anantapur Plant
Synopsis
Andhra Pradesh CM N. Chandrababu Naidu has signed a US$2 billion MoU with Kia India for a second manufacturing plant in Anantapur, adding 2-lakh vehicle annual capacity, 12,000 jobs, and taking cumulative Kia investment in the state to US$5 billion.
Key Takeaways
US$2 billion MoU signed between Andhra Pradesh and Kia India for a second manufacturing facility in Anantapur at the CII Partnership Summit 2026 .
The new plant will add an annual production capacity of 2 lakh vehicles and generate approximately 12,000 direct and indirect jobs .
Kia India's combined annual capacity across both Anantapur plants will exceed 6 lakh vehicles , with cumulative investment reaching US$5 billion .
Kia vehicles from Anantapur currently reach 100 countries , establishing the district as a global automotive export hub.
CM Naidu discussed EV manufacturing , automotive innovation, and local supplier ecosystem development with Kia India MD Gwanggu Lee and Kia Corporation SVP Eui Chul Jeong .
Kia's first Anantapur plant was established during Naidu's 2014–19 tenure , transforming a drought-prone district into a major manufacturing hub.
A drought-prone district that once symbolised agrarian distress is now being scripted into India's automotive future — again. Andhra Pradesh Chief Minister N. Chandrababu Naidu announced on Thursday, 12 November 2026 that the state has signed a Memorandum of Understanding with Kia India for a second manufacturing facility in Anantapur, backed by an investment of US$2 billion and projected to generate approximately 12,000 direct and indirect jobs.
From Drought Belt to Global Auto Hub: Anantapur's Transformation
The story begins more than a decade back. During Naidu's first tenure from 2014 to 2019, the Andhra Pradesh government brought Kia's first Indian plant to Anantapur — a district that had long struggled with erratic rainfall and limited industrial investment. That bet paid off. Today, Kia vehicles manufactured in Anantapur reach 100 countries, and the district anchors one of South India's most significant automotive clusters.
The new MoU deepens that commitment. The second facility will add an annual production capacity of 2 lakh vehicles, taking Kia India's combined output across both Anantapur plants to over 6 lakh vehicles per year. Total cumulative investment from Kia in Andhra Pradesh will reach US$5 billion.
What Naidu Discussed With Kia's Global Leadership
On the sidelines of the announcement at the CII Partnership Summit 2026, Chief Minister Naidu held direct talks with Mr. Gwanggu Lee, Managing Director and CEO of Kia India, and Mr. Eui Chul Jeong, Senior Vice President at Kia Corporation. The discussions covered Kia's long-term plans in Andhra Pradesh — specifically EV manufacturing, automotive innovation, and deepening the local supplier ecosystem.
That last point matters. A supplier ecosystem built around Anantapur would create an industrial multiplier effect, drawing component makers, logistics firms, and ancillary manufacturers into the district's orbit — compounding job creation well beyond the 12,000 figure announced today.
India's EV Ambitions, One MoU at a Time
The Anantapur expansion arrives as Indian states accelerate their race for electric vehicle manufacturing investment. Tamil Nadu, Gujarat, and Karnataka have all aggressively courted global auto majors with state-level incentive packages. Andhra Pradesh's advantage here is a proven partnership: Kia has already navigated the state's land, labour, and logistics landscape once. A second plant is not a new bet — it is a doubled-down endorsement.
The EV thread in Naidu's discussions with Kia leadership also aligns with New Delhi's broader Make in India manufacturing push, which has prioritised domestic EV production capacity as a strategic goal. If the second Anantapur facility eventually incorporates an EV line, it would position Andhra Pradesh as a rare state hosting both internal combustion and electric vehicle production under a single global brand's roof.
What to watch now: land acquisition timelines, groundbreaking dates, and whether a formal EV component or supplier park announcement follows from either Kia or the state government in the coming months. The MoU is signed. The clock is running.
Point of View
Decade-long industrial success story to validate his governance model ahead of continued investor outreach. By anchoring the expansion in Anantapur, a district historically associated with agrarian distress, the CM draws a direct line between his industrial policy choices and rural transformation, strengthening a core TDP narrative. The EV dimension is the most consequential long-term thread: if Kia formalises electric vehicle production in Andhra Pradesh, the state leapfrogs competitors still courting their first EV commitment. The bigger question is whether the supplier ecosystem can be deepened quickly enough to capture the full value chain of both plants.
NationPress
12 Nov 2026
Frequently Asked Questions
What is the Kia second plant MoU in Andhra Pradesh?
Andhra Pradesh has signed a Memorandum of Understanding with Kia India for a second manufacturing facility in Anantapur district, backed by an investment of US$2 billion. The plant will add 2-lakh vehicle annual capacity and around 12,000 direct and indirect jobs.
Where is the second Kia plant in India coming up?
The second Kia manufacturing facility will be located in Anantapur district, Andhra Pradesh — the same district that hosts Kia India's existing plant, which was established during CM Naidu's earlier tenure from 2014 to 2019.
How much has Kia invested in Andhra Pradesh in total?
With the new US$2 billion MoU, Kia's cumulative investment in Andhra Pradesh will reach US$5 billion across both Anantapur manufacturing plants.
Will Kia manufacture EVs in Andhra Pradesh?
CM Naidu held discussions with Kia India's MD and CEO as well as a Senior Vice President at Kia Corporation on EV manufacturing as part of Kia's long-term plans in Andhra Pradesh. No formal EV production announcement has been made yet.
How many jobs will the new Kia plant in Anantapur create?
The second Kia facility in Anantapur is projected to generate approximately 12,000 direct and indirect jobs, according to the MoU announced by Chief Minister N. Chandrababu Naidu on 12 November 2026.
