The Hyundai Motor group on Tuesday announced an investment strategy for India, committing $15.5 billion from 2026 through 2032, through companies such as Hyundai Motor India and Kia India.
Hyundai Motor India Executive Chair Euisun Chung met Prime Minister Narendra Modi in New Delhi on Tuesday to discuss long-term plans.
The initiative positions the country as a strategic core market for the group’s growth, emerging market expansion, and next-generation automotive innovation.
The plan entails manufacturing expansion, developing the infrastructure for research & development (R&D), cultivating local suppliers for localising parts, and technology innovation — fostering a comprehensive automotive industry ecosystem in India.
To execute this large-scale investment initiative, the group will establish an investment entity in the country.
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“India remains one of the Hyundai Motor group’s most important and strategic markets globally. The past 30 years have been defined by our commitment to India. This investment reaffirms our commitment to India for the next 30 years and beyond. Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development,” said Chung.
The new investment entity will coordinate and execute investment across R&D infrastructure, future technologies, and the broader automotive industry ecosystem. Additionally, it will serve as a platform to identify local partners, support strategic partnerships and foster collaboration with local suppliers.
Strengthening automotive ecosystem
The investment goes beyond developing facilities. It will expand capacity across Hyundai Motor India and Kia India to support significant growth in volumes while ensuring localisation to meet India’s market demands. This expansion will position India as one of the leading global export platforms for the group.
The group also plans to establish an R&D system in India through infrastructure expansion and cultivating local talent. A key focus is strengthening technological competitiveness through the group’s Indian R&D centre. With a planned investment of approximately $700 million in the R&D centre, including its vehicle-testing track, the group will accelerate next-generation automotive technology development and establish India as a core innovation hub.
The group will strengthen local supply chains and support supplier development through investment in regional partners. These partnerships will enhance localising parts, identify local suppliers, and build a stable, resilient supply-chain ecosystem.
It also aims to lead India’s mobility. This includes support for high-potential startups and expansion in new mobility services integrated with its core-vehicle business. The group will also explore opportunities in new business verticals including specialised automotive financing, electric-vehicle charging infrastructure, and end-of-life vehicle recycling.
The group employs more than 24,000 people in the country. It has established a production capacity of more than 1.4 million vehicles annually in India, encompassing Hyundai Motor’s facilities in Chennai (824,000-unit capacity) and its latest manufacturing facility in Pune (170,000-unit capacity), apart from Kia India’s Anantapur plant (431,000-unit capacity).
The capacity in Pune is scheduled to be scaled up.
The group has established operations in components and services through affiliates including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis.