Hyundai has announced plans to invest USD 15.5 billion in India between 2026 and 2032. The investment will cover research and development, manufacturing capacity, local supplier development and businesses such as electric vehicle charging and automotive financing. The announcement follows a meeting between prime minister Narendra Modi and Hyundai Motor Group executive chair Euisun Chung in New Delhi on October 13.
“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.
Hyundai investment: R&D and manufacturing plans
The company plans to invest around USD 700 million in its Indian R&D centre, including a vehicle testing track. The investment is intended to expand engineering facilities and support the development of automotive technologies and local talent.
The group also plans to increase manufacturing capacity across Hyundai and Kia. Their combined annual production capacity in India currently exceeds 1.4 million vehicles, across Hyundai’s facilities in Chennai and Pune, and Kia’s plant in Anantapur.
Capacity at Hyundai’s Pune facility is scheduled to increase in phases. The group is also assessing a third manufacturing location to meet its longer-term requirements.
Our sister publication, Autocar Professional reported on September 29 that Chhatrapati Sambhaji Nagar in Maharashtra and Sanand in Gujarat were among the locations under consideration. According to people familiar with the plans, the proposed facility could eventually add around 500,000 units of annual capacity, with investment potentially exceeding USD 2 billion over time. The plant could come up around 2030, with capacity added in phases over five to seven years. The October 13 announcement did not confirm the location, investment schedule or additional capacity.
The company will also invest in local suppliers and regional partners to increase parts localisation and strengthen its supply chain. It plans to establish a dedicated investment entity in India to oversee the programme and identify suppliers, technology partners and investment opportunities.
Hyundai to explore new mobility businesses
Beyond vehicle manufacturing, Hyundai Motor Group plans to explore automotive financing, EV charging infrastructure and end-of-life vehicle recycling. It also intends to support promising start-ups and expand into mobility services linked to its vehicle business.
Hyundai is developing electric three-wheelers with TVS Motor Company under a joint development agreement. The partnership is aimed at commercialising electric three-wheelers for India and other markets.
The group said the investment programme is expected to create employment in manufacturing, R&D, engineering and supply chains, including through suppliers and new mobility businesses. It currently employs more than 24,000 people across India.
Hyundai Motor Group has not disclosed how the USD 15.5 billion investment will be divided between Hyundai and Kia, or how much will be allocated to individual projects.