PUNE, India — Hyundai Motor Group Vice Chairman Chang Jae-hoon said the group will establish "HMG India," a dedicated investment entity, as it moves into artificial intelligence and energy businesses in the country.
"Beyond the vehicle and mobility segments, the group needs to invest at a broader level in areas such as energy and AI, so we plan to set up HMG India to secure investment expertise," Chang told reporters on the 14th at the company's new plant in Pune, Maharashtra. "We also intend to handle government relations and public relations through it."
The move positions India — the world's most populous country and its third-largest auto market — as a central pillar of the group's future growth, backed by a structured investment framework.
Also attending the briefing were Hyundai Motor President Jose Munoz, Hyundai Motor Group President for Planning and Coordination Seo Kang-hyun, and Tarun Garg, chief executive of Hyundai Motor India (HMIL).
"India has strengths in information technology, so we are also looking at technology investment and open innovation," Seo said. "We will pursue group-level investment in energy-related areas such as electricity and power supply in parallel."
On hydrogen energy, an area the group has been leading, Chang said India has a clear appetite for investment. "India is quite interested in energy self-sufficiency and its commitment to investment is clear," he said. "We will first apply infrastructure that produces hydrogen using solar power to mobility, then extend it to other industries and to energy."
Hyundai Motor Group announced a medium- to long-term plan to invest about $15.5 billion (about 20.8 trillion won) in India over seven years starting this year.
"About 60% goes to upgrading and expanding production facilities," Chang said. "Another 20% goes to entering new industries such as AI, venture investment and startups, and we also plan to invest heavily in research and development."
The briefing also focused on the group's strategy for recovering market share in India. Hyundai Motor's share of the Indian market peaked at 17.4% in 2020 but fell to 12.5% last year.
"We will launch 26 new models in the Indian market over the next 10 years to win back market share," Garg said. "We will introduce four electric vehicles by 2029 and invest in charging infrastructure."
Hyundai Motor will also add hybrids, aiming to make eco-friendly models half of its Indian lineup by 2030.
"We will roll out a wide range of models, including EVs, at speed and expand faster than anyone else," Chang said.
Munoz added: "We will introduce an SUV electric vehicle and push ahead with localizing battery production."