Hyundai Motor Group to invest $15.5 bil. in India through 2032
Summary
Hyundai Motor Group will invest $15.5 billion in India from 2026 through 2032 to expand production, research and development, and automotive ecosystem businesses following a meeting between Chung Euisun and Narendra Modi in New Delhi on Tuesday. The plan includes manufacturing expansion, local supplier development, future mobility businesses and a dedicated Indian investment entity. The group aims to make India a major production and export base while creating jobs and strengthening local engineering capabilities.
Key Facts
- The group’s current annual production capacity in India exceeds 1.4 million vehicles, comprising 824,000 units at Hyundai Motor India’s Chennai plant, 170,000 at its Pune facility and 431,000 at Kia India’s Anantapur plant.
- Hyundai Motor Group plans to invest about $700 million in its Indian research and development center, including a vehicle testing track.
- The group plans to explore automotive financing, electric vehicle charging infrastructure, end-of-life vehicle recycling, startup support and mobility services.
- Hyundai Motor Group employs more than 24,000 people across India, while its affiliates have contributed a combined $110 million to social welfare, education and skills initiatives since 2016.
- The group plans to establish the Hyundai Academy for Technical Skills in Chennai to provide vocational training.
South Asian country emerges as strategic hub for automotive group's global expansion
Hyundai Motor Group Executive Chair Chung Euisun, left, talks with Indian Prime Minister Narendra Modi in New Delhi, Tuesday (local time). Courtesy of Hyundai Motor Group
Hyundai Motor Group will invest $15.5 billion in India from 2026 through 2032 to expand production capacity, strengthen research and development and build a broader automotive industry ecosystem in one of its key growth markets.
The group announced the seven-year investment plan following a meeting between Executive Chair Chung Euisun and Indian Prime Minister Narendra Modi in New Delhi on Tuesday (local time).
The investment will cover manufacturing expansion, R&D infrastructure, local supplier development and emerging mobility businesses, with the aim of strengthening India's role as a major production and export base for the group.
To coordinate the investment, Hyundai Motor Group plans to establish a dedicated entity in India. The entity will oversee investments in R&D, future technologies and the broader automotive ecosystem, while identifying local partners and supporting strategic cooperation with Indian suppliers.
“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.
“Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development.”
The group plans to expand production capacity at Hyundai Motor India and Kia India to meet growing demand there and increase localization. The expansion is also expected to strengthen India's position as a global export hub for the two automakers.
Hyundai Motor Group currently has annual production capacity for more than 1.4 million vehicles in India. This includes 824,000 at Hyundai Motor India's Chennai plant, 170,000 at its facility in Pune and 431,000 at Kia India's plant in Anantapur. Capacity at the Pune facility is scheduled to increase in phases.
Alongside manufacturing expansion, the group plans to invest about $700 million in its Indian R&D center, including a vehicle testing track, to accelerate the development of next-generation automotive technologies and strengthen local engineering capabilities.
The group will also strengthen its local supply chain by investing in regional partners and helping Indian suppliers expand their capabilities in parts manufacturing and advanced technologies. These efforts are expected to increase parts localization and build a more resilient supplier network.
Beyond conventional vehicle manufacturing, Hyundai Motor Group plans to explore opportunities in specialized automotive financing, electric vehicle (EV) charging infrastructure and end-of-life vehicle recycling. It will also support promising startups and expand mobility services linked to its core automotive business.
The investment is expected to create jobs in manufacturing, engineering, R&D and supply chains. Hyundai Motor Group currently employs more than 24,000 people across India, and the new spending is expected to generate additional employment through supplier partnerships and emerging mobility businesses.
The investment builds on the group's existing presence across India's automotive industry. Its affiliates, including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis, operate in areas spanning components, financing, logistics and other automotive services.
India is one of the world's fastest-growing automotive markets and a key pillar of Hyundai Motor Group's medium- to long-term growth strategy. By expanding its manufacturing base, developing local engineering capabilities and strengthening supplier partnerships, the group aims to meet rising domestic demand while using India as a platform for exports and future mobility businesses.
Alongside its business operations, Hyundai Motor Group has supported social welfare, education and skills development initiatives in India. Its major affiliates have contributed a combined $110 million to such programs since 2016. The group also plans to establish the Hyundai Academy for Technical Skills in Chennai to provide vocational training.
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