Hyundai Motor Group will invest $15.5 billion in India between 2026 and 2032, expanding manufacturing, research and development, supplier localisation and future mobility businesses in one of the company’s most important global markets.
The seven-year investment strategy was announced on Tuesday and discussed during a recent meeting between Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung. The company said in a regulatory filing that it would establish a dedicated investment entity in India to coordinate projects across research infrastructure, future technologies and the wider automotive ecosystem.
The planned investment will cover manufacturing expansion at Hyundai Motor India and Kia India, as well as efforts to increase the use of locally produced parts. The companies currently have combined annual production capacity of more than 1.4 million vehicles in India.
Hyundai’s Chennai facilities account for 824,000 units of annual capacity, while its Pune plant has capacity for 170,000 units. Kia India’s facility in Anantapur, Andhra Pradesh, contributes a further 431,000 units, according to the company.
The group also plans to invest $700 million in a complete research and development system in India. The proposed R&D expansion will support a vehicle testing track, accelerate development of next-generation automotive technologies and strengthen India’s role as an innovation hub within the group.
The company said the strategy would include support for local suppliers and regional partners. The stated objectives are to improve parts localisation, identify additional domestic suppliers and create a more stable and resilient supply-chain ecosystem. That places the investment beyond factory expansion, with potential effects on component manufacturing, industrial services and specialised skills around existing production locations.
Hyundai also said it would explore new business verticals in India, including specialised automotive financing, electric vehicle charging infrastructure and end-of-life vehicle recycling. The announcement does not specify the locations, project-wise investment amounts or implementation timelines for these initiatives.
The proposed charging and recycling activities would extend the company’s footprint beyond vehicle production. However, the filing does not state whether these businesses will be developed independently, through partnerships or through the dedicated investment entity planned by the group.
Euisun Chung said India remained one of Hyundai Motor Group’s “most important and strategic markets globally”. He said the investment reaffirmed the group’s commitment to India for the next 30 years and beyond, and would create employment opportunities while supporting industrial development with partners and stakeholders.
The announcement comes as Hyundai seeks to position India as a core market for future growth, emerging-market expansion and next-generation automotive innovation. Its existing production network gives the group manufacturing bases in Tamil Nadu, Maharashtra and Andhra Pradesh, while the proposed supplier and R&D investments could deepen the industrial ecosystems connected to those facilities.
The company has not disclosed a project-by-project schedule for the $15.5 billion commitment. The next steps will depend on the identification of local partners, the development of manufacturing and R&D plans, and the execution of investments across the automotive ecosystem through 2032.
