Hyundai Motor Group has announced plans to invest $15.5 billion (₹1,47,436 crore) in India between 2026 and 2032, covering manufacturing expansion, research and development, local supplier development and future mobility technologies. The investment plan was discussed during a meeting between Indian Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister's Office in New Delhi on October 13, 2026. According to The Times of India, the seven-year investment will span manufacturing capacity expansion, R&D infrastructure development, localisation of automotive components and innovation in future technologies. To effectively execute this large-scale investment initiative, the Group will establish a dedicated investment entity in India that will systematically coordinate and execute investments across R&D infrastructure, future technologies and the broader automotive industry ecosystem. The entity will also serve as a platform to identify outstanding local partners, support strategic partnerships and foster collaboration with excellent local suppliers.
Hyundai Motor CEO José Muñoz revealed that the company's India operations serve as a blueprint for global market expansion, as reported by Business Standard. Speaking at the Bloomberg New Economy Forum 2026, Muñoz emphasized that Hyundai's experience in India, where it has built a broad business ecosystem and expanded its vehicle portfolio, is being replicated across other markets. The CEO stressed the importance of long-term strategic thinking over quarterly results when making investment decisions, noting that most competitors have reconsidered their electrification plans while Hyundai maintained its course. Executive Chair Euisun Chung stated that "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."
A major part of the investment will go towards expanding manufacturing capacity at Hyundai Motor India and Kia India to support higher production volumes and exports. The Group currently has an annual production capacity of more than 14 lakh vehicles in India, including 8.24 lakh units at Hyundai's Chennai facility, 1.70 lakh units at its Pune plant and 4.31 lakh units at Kia's Anantapur facility. The capacity at the Pune plant will be increased in phases, though the Group has not disclosed the additional manufacturing capacity planned under the new investment strategy. Hyundai and Kia together accounted for 18.82% of India's domestic passenger vehicle wholesales in FY26, down from 19.85% in FY25, according to data from the industry body SIAM. While the Korean duo's combined domestic wholesales rose 2.35% year-on-year to 8.74 lakh units, the overall PV industry expanded much faster, up 7.94% year-on-year. The Group plans to position India as one of the leading global export platforms for the Group through this manufacturing expansion.
The Group's investment strategy extends beyond traditional manufacturing to create a comprehensive automotive ecosystem in India across multiple key areas. The investment will focus on manufacturing expansion across Hyundai Motor India Ltd and Kia India Pvt Ltd to support significant volume growth while ensuring localisation to meet India's market demands. The Group will establish a complete R&D system in India through infrastructure expansion and local talent development, with a key focus on strengthening technological competitiveness through the Group's Indian R&D centre. Approximately $700 million (₹6,655 crore) will be invested in the R&D centre, including a vehicle testing track, to accelerate next-generation automotive technology development and establish India as a core innovation hub. Additionally, the Group will strengthen local supply chain and support supplier development in India through strategic investments in regional partners to enhance parts localization and build a stable, resilient supply-chain ecosystem. The investment is expected to create high-quality employment opportunities across manufacturing, R&D, engineering, and supply chain sectors beyond direct job creation at Hyundai Motor Group facilities.
According to Mint, Muñoz highlighted that about 50% of all Hyundai vehicles in India will be electrified by 2030, including compressed natural gas (CNG) vehicles, battery electric vehicles (EVs), fuel-cell electric vehicles and hybrids. The CEO noted that Hyundai stayed the course on electrification while competitors reconsidered their plans, developing innovative solutions like robotaxis. He also announced plans for entry-level EVs and SUV EVs in India, stating that 26 new vehicles will be introduced in the market. The Group aims to lead India's future mobility ecosystem through strategic investments in emerging opportunities, including support for high-potential startups and expansion into new mobility services integrated with its core vehicle business. The investment will also support local suppliers, emerging mobility startups and new business areas such as EV charging infrastructure, vehicle recycling and automotive financing. The Group will also explore opportunities in new business verticals including specialized automotive financing, EV charging infrastructure, and end-of-life vehicle recycling.
Shares of Hyundai Motor India Ltd ended at ₹1,969.00, up by ₹26.90, or 1.39%, on the BSE following the investment announcement. The Group currently employs more than 24,000 people in India and expects the investment to generate additional employment across manufacturing, engineering, R&D and the automotive supply chain. The initiative is also expected to contribute to India's economic development and help build a local talent pool in advanced automotive technologies. The Group has established component and service operations through its affiliates, including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis, further strengthening its comprehensive presence in the Indian automotive market. Beyond direct job creation at Hyundai Motor Group facilities, the investment will stimulate employment across the broader automotive ecosystem through supplier partnerships, technology development and emerging mobility ventures. The investment will also strengthen India's role in the group's global operations and exports while positioning the country as a key production and export hub for the Group's global operations.
