SEOUL, Oct. 14 (Yonhap) -- South Korea's Hyundai Motor Group said Wednesday it will invest US$15.5 billion in India through 2032, underscoring the country's importance to its global growth strategy.
The group's Executive Chair Euisun Chung announced the investment during a meeting with Indian Prime Minister Narendra Modi in New Delhi on Tuesday, the group said in a press release.
"India is a key strategic market for Hyundai Motor Group's future growth, expansion into emerging markets and next-generation automotive innovation. The investment will be made over seven years starting this year," Chung said.
The investment will go toward expanding manufacturing capacity, developing research and development (R&D) infrastructure, fostering local suppliers to increase parts localization, and advancing future technologies, the release said.
To implement the investment plan, the group plans to establish a dedicated investment entity in India.
With a population of 1.47 billion, India is the world's third-largest automobile market after China and the United States.
Automakers seeking to compete in India need local production facilities, as import tariffs can reach 70 percent to 110 percent.
Hyundai Motor Co. operates two plants in Chennai and another in Pune, while its smaller affiliate Kia Corp. operates a plant in Anantapur. The facilities have a combined annual production capacity of 1.4 million vehicles, which is expected to increase with further investment.
Hyundai and Kia sold a combined 852,164 vehicles in India last year, accounting for 18.7 percent of the country's passenger vehicle market and ranking second behind Maruti Suzuki India Ltd.
In this photo taken Oct. 13, 2026, and provided by Hyundai Motor Group, the group's Executive Chair Euisun Chung (L) talks with Indian Prime Minister Narendra Modi about the group's long-term investment plans in India at the prime minister's residence in New Delhi. (PHOTO NOT FOR SALE) (Yonhap)
kyongae.choi@yna.co.kr
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