Hyundai Motor Group will invest $15.5 billion in India between 2026 and 2032 to expand vehicle manufacturing, research and development, local supplier networks and future mobility businesses, in one of the largest long-term commitments by an automobile group to the country’s industrial ecosystem.
The plan was announced after Hyundai Motor India Executive Chair Euisun Chung met Prime Minister Narendra Modi in New Delhi on Tuesday. The investment will be made through group companies including Hyundai Motor India and Kia India, with the group describing India as a strategic market for growth, exports and next-generation automotive innovation.
The investment programme will cover manufacturing expansion, R&D infrastructure, technology development and the localisation of vehicle components. Hyundai said it would establish an investment entity in India to coordinate the programme, execute investments and identify local partners. The entity will also support strategic partnerships and collaboration with suppliers.
The group plans to expand capacity across Hyundai Motor India and Kia India to support higher volumes and strengthen India’s position as a global export platform. It also intends to develop an R&D system in the country by expanding infrastructure and cultivating local talent. The programme includes an investment of approximately $700 million in an Indian R&D centre, including a vehicle-testing track, to support the development of next-generation automotive technologies.
The group’s focus on localisation will extend beyond its own facilities. Hyundai said it would work with regional partners to develop suppliers, localise parts and build a more stable and resilient supply-chain ecosystem. The plan also includes support for high-potential startups and the expansion of new mobility services linked to its vehicle business.
The proposed areas of exploration include specialised automotive financing, electric-vehicle charging infrastructure and end-of-life vehicle recycling. These activities would widen the group’s footprint beyond vehicle assembly and connect its manufacturing operations with financing, energy infrastructure, circularity and mobility services.
“India remains one of the 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. He added that the investment would create more employment opportunities and support industrial development through collaboration with partners and stakeholders.
The group currently employs more than 24,000 people in India and has production capacity of more than 1.4 million vehicles annually. This includes Hyundai Motor’s Chennai facilities, with capacity of 824,000 vehicles, its Pune facility, with capacity of 170,000 vehicles, and Kia India’s Anantapur plant, with capacity of 431,000 vehicles. Capacity at Pune is scheduled to be scaled up.
The group also has operations in components and services through affiliates including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis. The new investment entity is expected to coordinate investments across manufacturing, R&D infrastructure, future technologies and the wider automotive ecosystem through 2032.
