Kia India Delays Capacity Expansion Plans, Focuses on Optimizing Existing Facilities

Kia India, the Indian arm of Kia Corp., plans to delay its capacity expansion efforts until after 2025, despite its Anantpur facility in Andhra Pradesh operating at more than 100% capacity. The plant, which initially had a capacity of 300,000 units, expanded to 350,000 units and aims to reach 400,000 units through process optimization. Although the company may consider adding another shift, there are no immediate plans for a new factory.

Kia might also concentrate on specific models, like the popular Seltos, emphasizing the domestic market. While Hyundai, Kia’s sister brand, is set to utilize acquired capacity, Kia India is not expected to do so in the near future. The company is focusing on advanced features, like radar-based advanced driver assistance systems, and plans to introduce an electric vehicle in FY25, part of Kia Corp’s global strategy of launching 14 battery electric vehicles.