Kia in talks with Andhra Pradesh to set up EV export hub near Visakhapatnam
Kia Corporation is in talks with the Andhra Pradesh Government to set up an export-oriented electric vehicle (EV) completely knocked down (CKD) kit manufacturing and logistics hub near Visakhapatnam Port, according to sources.
The discussions gained momentum after State IT, Electronics and Education Minister Nara Lokesh met senior Kia officials, including Executive Vice-President Tue Hun Lee, during his visit to South Korea in July.
Mr. Lokesh invited Kia to establish an integrated EV and hybrid vehicle ecosystem near Visakhapatnam Port. He proposed facilities for EV and hybrid vehicle manufacturing, component production, Platform Beyond Vehicles (PBV) solutions, and CKD assembly and export operations.
Sources in the Industries Department said the State Government was also discussing the possibility of setting up battery system facilities and mobility training institutes as part of the proposed investment. The government is considering tailor-made incentives to persuade Kia to expand its operations in the State.
Kia already operates a large manufacturing facility at Earramanchi village near Penukonda in Sri Sathya Sai district. The 536-acre facility started production in 2019 with a capacity of three lakh vehicles a year. The company has since increased its installed capacity to around four to 4.3 lakh units annually.
The Penukonda plant manufactures models such as the Seltos and Sonet and contributes significantly to Kia’s global CKD exports.
Kia is reportedly planning to increase its CKD exports from India by 2030 and is looking at new markets in the Middle East and Africa. A facility near Visakhapatnam could support the company’s export plans while complementing production at Penukonda.
If the proposal materialises, it could give a major boost to Andhra Pradesh’s efforts to attract automobile and electric mobility investments.
The proposed Kia investment comes soon after Royal Enfield announced plans to establish a ₹2,200-crore greenfield manufacturing facility at Satyavedu in Tirupati district.
Visakhapatnam Port expansion
Visakhapatnam Port is also expanding its infrastructure and strengthening its position as a regional logistics and export hub.
The port is partnering in the development of Mulapeta Port in Srikakulam and the proposed mega shipping cluster at Dugarajapatnam in Tirupati district. It has also signed an MoU with Paradip Port and the Government of India to develop a major port at Bahuda on the Odisha-Andhra Pradesh border.
The expanding port infrastructure and established cargo-handling capabilities could support the proposed automobile and EV export ecosystem near Visakhapatnam.
The Kia project is still under discussion, and the company and the State Government are yet to make a formal announcement on the investment, location and other project details.