Hyundai Motor Group Chair Euisun Chung met Prime Minister Narendra Modi in New Delhi on Tuesday. The company announced plans to invest $15.5 billion in India between 2026 and 2032. This seven-year investment will focus on expanding manufacturing capacity, strengthening research and development, and advancing future mobility technologies across the country.
Hyundai Motor Group Executive Chair Euisun Chung met Prime Minister Narendra Modi in New Delhi on Tuesday, following which the South Korean automotive group announced plans to invest $15.5 billion in India between 2026 and 2032. The seven-year investment will focus on expanding manufacturing capacity, strengthening research and development (R&D) infrastructure, developing local suppliers and advancing future mobility technologies.
The announcement underlines India’s growing importance in Hyundai Motor Group’s global growth strategy, with the company aiming to strengthen the country’s position as a manufacturing and export hub for its automotive business.
The investment programme will span manufacturing expansion, R&D infrastructure, parts localisation, supplier development and next-generation automotive technologies. The group also plans to establish a dedicated investment entity in India to coordinate investments and facilitate strategic partnerships with local companies.
Manufacturing capacity expansion across Hyundai and Kia
A key focus of the investment will be expanding manufacturing capacity across Hyundai Motor India Limited and Kia India Private Limited to support future volume growth and strengthen localisation.
Hyundai Motor Group currently has annual production capacity of more than 1.4 million vehicles across India. This includes 824,000 units at Hyundai’s Chennai facilities, 170,000 units at its Pune facility and 431,000 units at Kia India’s Anantapur plant.
The group said capacity at the Pune facility would be scaled up in phases, further expanding its manufacturing footprint in the country.
Hyundai Motor Group also intends to position India as one of its leading global export platforms, with manufacturing expansion aimed at serving domestic demand as well as international markets.
$700 million investment planned for R&D
Research and development will be another key pillar of the investment strategy, with Hyundai Motor Group planning to invest approximately $700 million in its Indian R&D centre, including a vehicle testing track.
The group intends to expand its R&D infrastructure and develop local talent to accelerate next-generation automotive technology development. The objective is to strengthen India’s role as an innovation hub within the group’s global operations.
The investment will also focus on developing a local supply chain, increasing parts localisation and building partnerships with Indian suppliers. According to the group, these initiatives are expected to improve supply-chain resilience and support the broader automotive industry.
EV charging, financing and vehicle recycling in focus
Beyond conventional vehicle manufacturing, Hyundai Motor Group plans to explore opportunities in emerging mobility businesses, including electric vehicle charging infrastructure, specialised automotive financing and end-of-life vehicle recycling.
The group also intends to support high-potential startups and expand mobility services integrated with its core vehicle business.
A dedicated investment entity will be established in India to coordinate investments across R&D, future technologies and the wider automotive ecosystem. It will also help identify local partners and facilitate strategic collaborations.
Investment expected to generate employment
Hyundai Motor Group currently employs more than 24,000 people across India. The company expects the new investment to create additional employment opportunities in manufacturing, engineering, R&D and supply-chain operations.
The employment impact is also expected to extend to supplier partnerships, technology development and emerging mobility businesses.
“India remains one of Hyundai Motor Group’s most important and strategic markets globally,” Chung said in the press release, adding that the investment reaffirmed the group’s commitment to India for the next 30 years and beyond.
India’s growing importance in Hyundai’s global strategy
Hyundai Motor Group described India as a critical market for its medium- and long-term growth strategy, citing the country’s expanding automotive market and potential as a global manufacturing and export base.
The group’s presence extends beyond Hyundai and Kia vehicles through affiliates including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis, covering components, services, financing and logistics.
The group also highlighted its social initiatives in India, including the Samarth campaign for disability inclusion and plans for a Hyundai Academy for Technical Skills vocational training institute in Chennai. Its major affiliates have cumulatively contributed approximately $110 million to social welfare, education, skill development and community programmes in India since 2016.