Hyundai Motor Group To Invest $15.5 Billion In India To Expand Manufacturing, Develop Local Suppliers

PM Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister’s Office in New Delhi.

Hyundai Motor Group on Tuesday announced plans to invest $15.5 billion in India between 2026 and 2032, in a bid to expand manufacturing capacity, strengthen research and development (R&D), develop local suppliers and advance future mobility technologies. The automaker's seven-year investment plan highlights India's growing importance to the automaker's long-term growth strategy, emerging market expansion and automotive innovation.

The announcement follows a meeting between Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister's Office in New Delhi on October 13.

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Hyundai's investment in the country will cover manufacturing expansion, R&D infrastructure, supplier development, greater parts localisation and new technology development. To oversee the initiative, the Group plans to establish a dedicated investment entity in India to coordinate projects across these areas, identify local partners and strengthen collaboration with Indian suppliers.

“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. Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development," Euisun Chung, Executive Chair, Hyundai Motor Group, said in a staterment.

What Will Drive Investment

Hyundai Motor Group plans to expand manufacturing capacity at Hyundai Motor India Limited (HMIL) and Kia India Pvt. Limited to support higher volumes and meet domestic market requirements through increased localisation. The expansion is also intended to strengthen India's role as a global export base for the Group.

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Research and development will be another key area of investment. The Group plans to expand its R&D infrastructure in India and develop local talent, with a focus on strengthening the capabilities of its Indian R&D centre.

Around $700 million is earmarked for the R&D centre, including its vehicle testing track. The investment is expected to support the development of next-generation automotive technologies and strengthen India's position as an innovation hub for the Group.

Local Suppliers, Future Mobility In Focus

The investment plan also intends to build a stronger domestic supply chain through partnerships with regional suppliers. The Group intends to increase parts localisation, develop local supplier capabilities and establish a more resilient supply-chain network across India's automotive industry.

In future mobility, Hyundai Motor Group plans to invest in promising start-ups and explore new mobility services that complement its core vehicle business. Other areas under consideration include specialised automotive financing, electric vehicle charging infrastructure and end-of-life vehicle recycling.

Investment To Generate Employment

Hyundai Motor Group currently employs more than 24,000 people across India. The new investment is expected to create additional employment opportunities in manufacturing, R&D, engineering and supply chains.

Beyond jobs at the Group's own facilities, the initiative is expected to support employment through supplier partnerships, technology development and emerging mobility businesses. It is also intended to expand India's pool of skilled workers in advanced automotive technologies.

India’s Manufacturing, Supplier Network

Hyundai Motor Group has established annual vehicle production capacity of more than 1.4 million units in India across its Hyundai and Kia operations. This includes HMIL's Chennai facility, with an annual capacity of 824,000 vehicles; its Pune facility, with a capacity of 170,000 units; and Kia India's plant in Anantapur, which has a capacity of 431,000 units. The Group said capacity at the Pune facility is scheduled to increase in phases.

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