Hyundai Motor Group to invest $15.5 billion in India by 2032

Hyundai Motor Group will invest $15.5 billion in India between 2026 and 2032, expanding manufacturing capacity, research and development (R&D) infrastructure and localisation of components as it seeks to strengthen the country’s position as a global automotive hub.

The investment plan was discussed at a meeting between Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister’s Office in New Delhi on Tuesday.

The seven-year investment will span manufacturing expansion, future technology development, local supplier partnerships and infrastructure development, the South Korean automotive major said in a statement.

The Group plans to expand production capacity across Hyundai Motor India Ltd (HMIL) and Kia India Pvt Ltd to cater to rising demand and improve localisation. India will also be positioned as one of the Group’s leading global export platforms.

To coordinate the investment programme, Hyundai Motor Group will establish a dedicated investment entity in India. It will oversee investments in R&D, future technologies and the wider automotive ecosystem, besides identifying local partners and strengthening supplier collaborations.

“India remains one of 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,” Mr. Chung said.

“Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development,” he added.

The Group plans to strengthen its Indian R&D capabilities through infrastructure expansion and talent development. It has earmarked approximately $700 million for its R&D centre, including a vehicle testing track, to accelerate next-generation automotive technology development and establish India as a key innovation hub.

Hyundai will also explore opportunities in specialised automotive financing, electric vehicle (EV) charging infrastructure and end-of-life vehicle recycling.

Employing more than 24,000 people in India, the Group expects the investment to generate high-quality jobs across manufacturing, engineering, R&D and supply chains.

Its annual production capacity in India exceeds 1.4 million vehicles, comprising HMIL’s Chennai facility (824,000 units), its Pune plant (170,000 units) and Kia India’s Anantapur facility (431,000 units). Pune’s capacity will be scaled up in phases, further expanding the Group’s manufacturing footprint.