Hyundai Motor Group has announced a comprehensive investment strategy for India, allocating $15.5 billion between 2026 and 2032. This initiative aims to strengthen India's position as a key strategic market for the Group's future growth, expansion into emerging markets, and the implementation of next-generation automotive industry innovations.
The investments will be channeled through entities such as Hyundai Motor India and Kia India, as well as other Group structures. The seven-year plan encompasses expanding production capacities, developing research and development (R&D) infrastructure, supporting local suppliers for component localization, and driving innovation in future technologies, thereby forming a holistic automotive ecosystem in India. To effectively execute this large-scale project, the Group will establish a specialized investment structure in India.
During a meeting on Tuesday, the company's Executive Chairman, Euisun Chung, discussed long-term plans with Prime Minister Narendra Modi in New Delhi. This meeting underscored the Group's commitment to strengthening its presence in India and contributing to the country's automotive sector growth. Chung stated that India remains one of the most vital and strategic markets for Hyundai Motor Group globally, and this investment confirms their commitment to India for the next 30 years and beyond. He also noted that these investments will create more jobs, and the company will collaborate with partners and stakeholders to support India's industrial development.
The new investment structure will coordinate and implement investments in R&D infrastructure, future technologies, and the broader automotive ecosystem. Furthermore, it will serve as a platform for identifying outstanding local partners, supporting strategic collaborations, and facilitating engagement with high-caliber local suppliers.
How will Hyundai Motor Group strengthen India's automotive ecosystem?
The investments go beyond simply building new facilities. In manufacturing, there are plans to increase the capacities of Hyundai Motor India and Kia India to ensure significant volume growth while simultaneously localizing products according to the needs of the Indian market. This will enable India to become one of the Group's leading global export platforms.
The Group also intends to establish a complete research and development system in India by expanding infrastructure and nurturing local talent. Special attention is being paid to enhancing technological competitiveness through the Group's Indian R&D center. Planned investments in this center, including a vehicle test track, amount to approximately $700 million, which will accelerate the development of next-generation automotive technologies and establish India as a key innovation hub.
Moreover, the Group will reinforce the local supply chain and support supplier development in India through strategic investments in regional partners. These partnerships aim to improve component localization, source excellent local suppliers, and build a stable and resilient supply chain within India's automotive industry.
The company also seeks to lead the future mobility ecosystem in India through strategic investments in new opportunities. This includes supporting promising startups and entering new mobility services integrated with the core automotive business. The Group will also explore potential in new business verticals, such as specialized automotive financing, electric vehicle charging infrastructure, and end-of-life vehicle recycling.
Currently, Hyundai Motor Group employs over 24,000 people in India, and the new investments are expected to generate additional employment. The Group has already established a comprehensive production capacity exceeding 1.4 million vehicles annually in India. This capacity includes the HMIL facility in Chennai (capacity of 824,000 units), the latest HMIL plant in Pune (capacity of 170,000 units), and the Kia India plant in Anantapur (capacity of 431,000 units). As the Pune capacities will be ramped up incrementally, the Group's production presence in India will continue to grow.
The Group has also created operational divisions for components and servicing through its affiliated companies, including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia, and Hyundai Glovis.