Exclusive: Kia Studies New 2 lakh-Unit Production Line at Anantapur Plant

Kia India has started evaluating a new production line with an annual capacity of around 2 lakh units at its Anantapur plant in Andhra Pradesh as it prepares for its next phase of growth in the country.

The proposal is at an early stage, and a final investment decision has yet to be taken, people familiar with the development told Autocar Professional. The supplier ecosystem has been sounded out as part of the initial assessment.

The capacity study comes amid a strong response to the all-new Seltos and Kia’s plans to widen its India portfolio with new SUVs and a broader range of powertrains, including hybrids, CNG and electric vehicles.

Responding to queries from Autocar Professional, a Kia India spokesperson did not comment specifically on the proposed production line but said the company would scale its operations in line with market demand.

“Kia India continues to see strong momentum across our portfolio, with the all-new Seltos averaging around 10,000 units a month since launch, which is a clear reflection of the trust our customers continue to place in us,” the spokesperson said.

“We remain closely attuned to market response and evolving customer demand, and this continues to guide how we think about our portfolio and our plans here. India remains a strategic market for Kia globally, as it has been since we entered, and we will continue to scale our operations in line with the market’s growth and our customers’ evolving needs.”

Capacity Plan Tied to Product Expansion

Kia’s Anantapur plant has an installed annual capacity of around 3 lakh units. The company has previously managed output by moving between two- and three-shift operations, depending on demand.

The proposed new line would lift the plant’s potential capacity to around 5 lakh units annually and give Kia greater flexibility to accommodate additional models and powertrain combinations. However, its implementation will depend on demand visibility and the utilisation of the existing facility.

Kia is working on a B-segment SUV for India in 2028. The proposed model is likely to be electric and will be positioned between the Syros and Seltos.

The carmaker is also evaluating a C-segment utility vehicle to bridge the gap between the Seltos and the upcoming Sorento. The body style is yet to be finalised, with both SUV and MPV formats under consideration.

The two products would reduce the gaps on either side of the Seltos and allow Kia to address more sub-segments without entering the hatchback or entry-level car markets.

Wider Powertrain Mix

The product expansion will bring greater manufacturing complexity as Kia moves beyond its current dependence on petrol and diesel in the mass market.

The company is expected to introduce a hybrid version of the Seltos in 2027. The upcoming Sorento is also likely to offer a 1.6-litre turbo-petrol strong-hybrid powertrain alongside diesel, while the Carnival is expected to receive a hybrid option without dropping its diesel engine.

Kia is separately expected to enter the CNG market through the Carens. Its electric portfolio is also set to expand as the carmaker works towards a broader mix of electrified products.

Kia has indicated that eight of the 10 models it plans to introduce from 2026 will feature some form of electrification. The expansion of hybrid and electric offerings will require the plant to manage more architectures, components and powertrain combinations.

Preparing for 2030 Targets

Kia is targeting domestic sales of around 4.1 lakh units and a market share of 7.6 percent by 2030. It also plans to expand its sales and service network to around 800 touchpoints.

The target represents an increase of about 52 percent over Kia’s previous domestic sales peak of approximately 2.7 lakh units. Exports could take its overall production requirement closer to half a million vehicles annually.

Kia grew by around 13 percent in the last financial year, ahead of the Indian passenger vehicle market’s growth of approximately 8 percent. The recovery has been supported by the Seltos and Sonet, along with measures to correct the positioning of the Syros.

The proposed production line would give Kia headroom to support its new products and longer-term volume ambitions. However, the company is likely to take a final call only after assessing the sustained market response to its existing models and securing greater visibility on the upcoming programmes.