Kia is considering expanding production capacity at its Anantapur, Andhra Pradesh plant as sales rise and the company looks to increase both domestic deliveries and exports.
The automaker is targeting 4.1 lakh annual sales and a 7.6% market share by 2030, after recording a 17% increase in sales volume during the first seven months of 2026.
Kia plans to launch 10 new models in India, eight of them electrified, while expanding its dealership network into Tier 3 and Tier 4 cities to tap rural demand.
South Korean carmaker Kia Corp plans to boost its vehicle manufacturing capacity in India, aiming to satisfy growing domestic and export demand, a report by Economic Times said. The maker of Seltos and Sonet SUVs registered a 17% surge in sales volume, delivering 191,949 vehicles during 2026's first seven months.
The automaker aims for annual sales of 410,000 vehicles alongside a 7.6% market share by 2030. "Our sales grew by 15% last year, and we are on track to close the current calendar year with a strong double-digit increase in volumes," Atul Sood, senior vice-president at Kia India, said.
1 August 2026
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Expanding Production Capacity
The brand's assembly plant in Anantapur, Andhra Pradesh, currently has an annual production limit of 430,000 vehicles. The country represents Kia's fourth-largest market, contributing 10% of its global sales volume. Sood said a decision on capacity expansion will be taken shortly.
"Going forward, we are looking at ways to expand capacity to not only serve the domestic market but also scale up exports from the country," Sood said.
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Driving Electrification Strategy
To maintain this sales momentum, the carmaker will launch 10 new models in India, with eight of them being electrified.
"While internal combustion engine (ICE) vehicles will continue to be a part of our strategy, work is on to electrify our portfolio in a big way," Sood said.
"We have seen strong traction towards electrification in the wake of the Middle East crisis. The EV market is not at the inflection point yet, but it is moving in the right direction. We will have multiple technologies, including EVs, strong hybrids and CNG, to meet customer needs here."
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Data from the road ministry’s Vahan portal, revealed that electric car registrations in the country jumped 90% year-on-year between March and July 2026. Electric models accounted for 7.8% of new car sales in July, nearly doubling from 4% in calendar 2025.
Targeting Rural Markets
The automaker is also expanding its nationwide dealership footprint into Tier 3 and Tier 4 locations to tap rising rural demand. "Buying power in rural India is on the rise. We are expanding in Tier 3 and Tier 4 markets to reach out to customers there," Sood said.
