Hyundai Motor Group on Tuesday said the company will invest $15.5 billion in India between 2026 and 2032, expanding manufacturing capacity, research and development (R&D) infrastructure and its local supplier network.
The investment plan was announced following a meeting between Hyundai Motor Group executive chair Euisun Chung and Prime Minister Narendra Modi at the Prime Minister’s Office in New Delhi on October 13.
The seven-year investment will cover manufacturing expansion at Hyundai Motor India and Kia India, development of local suppliers, automotive technology and new mobility businesses. The group will also establish a dedicated investment entity in India to coordinate investments and partnerships across these areas.
“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,” Chung said.
He added that the investment would create employment opportunities and support the country’s industrial development.
R&D, localisation in focus
Hyundai Motor Group plans to invest around $700 million in its Indian R&D centre, including a vehicle testing track, to develop automotive technologies and strengthen local engineering capabilities.
The group also plans to expand manufacturing capacity across Hyundai Motor India and Kia India to cater to domestic demand and strengthen India’s role as an export base. Its supplier development programme will focus on increasing parts localisation and building partnerships with regional suppliers.
Beyond manufacturing and R&D, the group will explore investments in emerging mobility businesses, including electric vehicle charging infrastructure, specialised automotive financing and end-of-life vehicle recycling. It also plans to support startups and expand mobility services linked to its core vehicle business.
Hyundai Motor Group employs more than 24,000 people in India. The proposed investment is expected to generate employment across manufacturing, engineering, R&D and supply chains, as well as through supplier partnerships and new mobility ventures.
Group has capacity to make over 1.4 million vehicles annually
Hyundai Motor Group currently has an annual vehicle production capacity of more than 1.4 million units in India across its facilities in Chennai and Pune, operated by Hyundai Motor India, and Kia India's plant in Anantapur, Andhra Pradesh.
Hyundai Motor India's Chennai facility has a capacity of 824,000 units annually, while its Pune facility has a capacity of 170,000 units. Kia India's Anantapur plant can produce 431,000 units a year. The group said Pune's capacity would be scaled up in phases.
The group has also established component and service operations in India through affiliates including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis.
Since 2016, the group's major affiliates have cumulatively contributed around $110 million to social welfare, education, skill development and community programmes in India, according to the company.
Shares of Hyundai Motor India Limited ended 1.23% higher at ₹1,964.90 apiece on the NSE on Tuesday. The company's stock has slipped over 17% during the past year, underperforming the Nifty Next 50 index that has gained nearly 0.50% during the same period.