Hyundai Motor Group commits $15.5 billion investment in India by 2032

MUMBAI: Hyundai Motor Group is shifting gears in India, with a USD 15.5 billion investment plan aimed at expanding manufacturing, accelerating automotive innovation and strengthening local supply chains between 2026 and 2032. The seven-year commitment underlines India’s growing importance to the group’s global ambitions, with future mobility and technology development also in focus.

The investment strategy was discussed during 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 13 October 2026. The group said the investment would support India’s automotive ecosystem, spanning manufacturing, research and development (R&D), supplier partnerships and emerging mobility businesses.

“This investment reaffirms our commitment to India for the next 30 years and beyond,” Chung said, adding that the group intended to create employment opportunities and support the country’s industrial development.

A key part of the plan is expanding manufacturing capacity at Hyundai Motor India Limited (HMIL) and Kia India Pvt. Limited. The group aims to support higher vehicle volumes while increasing localisation and strengthening India’s position as an export base for its global operations.

Hyundai Motor Group currently has annual production capacity of more than 1.4 million vehicles in India across three facilities: 824,000 units at HMIL’s Chennai operations, 170,000 units at its Pune facility and 431,000 units at Kia India’s plant in Anantapur. The Pune facility’s capacity is scheduled to scale up in phases, further expanding the group’s manufacturing footprint.

R&D is another major focus, with the group planning to invest approximately USD 700 million in its Indian R&D centre, including a vehicle testing track. The investment is intended to strengthen local engineering capabilities, develop next-generation automotive technologies and position India as a key innovation hub.

The group also plans to establish a dedicated investment entity in India to coordinate spending across R&D infrastructure, future technologies and the wider automotive ecosystem. The entity will identify local partners, support strategic collaborations and help develop domestic suppliers.

Beyond factories and testing facilities, the investment plan includes building a more resilient domestic supply chain through partnerships with regional suppliers. The focus is on increasing parts localisation, developing supplier capabilities and reducing vulnerabilities across the automotive industry.

Future mobility will form another part of the strategy. Hyundai Motor Group plans to support promising start-ups and explore new mobility services connected to its core vehicle business. Potential areas include specialised automotive financing, electric vehicle charging infrastructure and end-of-life vehicle recycling.

The group’s Indian operations already extend beyond vehicle manufacturing through affiliates including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis. The new investment plan is expected to build on this existing network.

Hyundai Motor Group employs more than 24,000 people across India. The proposed investment is expected to create additional employment opportunities in manufacturing, R&D, engineering and supply chains, while supporting jobs through supplier partnerships, technology development and emerging mobility ventures.

The group also pointed to its social initiatives as part of its wider India presence. These include the Samarth campaign for disability inclusion and plans for the HATS (Hyundai Academy for Technical Skills) vocational training institute in Chennai.

Since 2016, the group’s major affiliates have cumulatively contributed approximately USD 110 million to social welfare, education, skill development and community programmes across India, according to the announcement.

The investment comes as Hyundai Motor Group positions India as a strategic market for future growth and a platform for expanding its global operations. With manufacturing scale, engineering investment and new mobility businesses on the agenda, the group’s next seven years in India are set to be about more than making vehicles, they will also be about building the ecosystem around them.