Hyundai To Invest $15.5 Bn In India To Expand Manufacturing, Future Mobility

Hyundai Motor Group will invest $15.5 billion in India between 2026 and 2032, expanding its manufacturing operations, research capabilities and local supply chain as it seeks to strengthen the country's role in its global automotive business.

The announcement followed a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi, the company said in a statement on Tuesday, October 13.

The seven-year investment plan covers Hyundai Motor India Limited (HMIL), Kia India and other parts of the automotive ecosystem, including emerging mobility technologies.

The group also plans to establish a dedicated investment entity in India to coordinate funding, develop partnerships and identify local suppliers, the company said.

"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 in a statement.

"Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development," he added.

Hyundai To Expand Manufacturing And R&D

Hyundai plans to increase manufacturing capacity across HMIL and Kia India to cater to domestic demand and strengthen India's position as an export base, the company said.

It has earmarked approximately $700 million for its Indian R&D centre, including a vehicle testing track. The investment is intended to expand research infrastructure, develop local talent and support work on next-generation automotive technologies.

The group will also invest in regional suppliers to increase parts localisation and strengthen supply-chain resilience.

Its future mobility plans include supporting startups and exploring opportunities in automotive financing, electric vehicle (EV) charging infrastructure and end-of-life vehicle recycling, per the company's statement.

Mfg Capacity Exceeds 1.4 Mn Vehicles

Hyundai currently has annual vehicle manufacturing capacity of more than 1.4 million units in India, spread across HMIL's Chennai and Pune facilities and Kia India's plant in Anantapur, the company said.

Chennai has a capacity of 824,000 vehicles a year, while Pune can produce 170,000 units and Anantapur 431,000 units. The company said Pune's capacity would be increased in phases.

Its Indian operations also include component and service businesses such as Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis.

The group employs more than 24,000 people in India and expects the investment to generate jobs across manufacturing, engineering, research and supplier networks, it added.