New Delhi, October 14, 2026: Hyundai Motor Group has announced plans to invest $15.5 billion in India between 2026 and 2032 to expand vehicle manufacturing, strengthen research and development (R&D), increase local sourcing of automotive components and develop new mobility businesses. The investment will cover the group’s Hyundai and Kia operations as it seeks to strengthen India’s role as a vehicle manufacturing, technology development and export hub.
The investment strategy was announced on October 13 following a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi at the Prime Minister’s Office in New Delhi. According to Hyundai, the discussions focused on the Indian automotive industry, future growth opportunities and the group’s long-term plans for the country.
A major part of the planned investment will support manufacturing expansion at Hyundai Motor India Limited and Kia India. The group aims to increase vehicle production capacity and expand local sourcing of components to serve the Indian market and support exports.
Hyundai Motor Group currently has a combined annual manufacturing capacity of approximately 1.43 million vehicles in India. This includes 824,000 vehicles at Hyundai’s Chennai facilities, 170,000 at its Pune plant and 431,000 at Kia India’s Anantapur plant. Hyundai plans to expand capacity at Pune in phases but has not specified the additional capacity or completion timeline in its latest announcement.
The investment programme also includes approximately $700 million for Hyundai’s Indian R&D centre and associated facilities, including a vehicle testing track. The group plans to strengthen research infrastructure, develop engineering talent and expand its ability to design and test advanced automotive technologies in India.
According to Hyundai, the expansion will support the development of a more comprehensive research and development system in the country, giving its Indian operations a greater role in next-generation automotive technology alongside vehicle manufacturing.
To coordinate the investments, Hyundai Motor Group plans to establish a dedicated investment entity in India. The entity will oversee investment activities across research infrastructure, emerging technologies and the automotive industry while supporting cooperation with local business partners.
The group also plans to increase the localisation of automotive components by strengthening relationships with Indian suppliers. These measures are intended to increase local sourcing and improve the resilience of Hyundai’s automotive supply chain in India.
Beyond vehicle manufacturing, Hyundai will explore business opportunities in electric vehicle charging infrastructure, specialised automotive financing, vehicle recycling and other mobility services. It also plans to support Indian startups developing emerging mobility technologies.
The company has not specified individual investment amounts, locations or implementation schedules for these proposed businesses in its October 13 announcement.
Hyundai Motor Group Executive Chair Euisun Chung described India as a strategically important market for the company. Referring to Hyundai’s three decades of operations in the country, he said the investment reflected the group’s commitment to India’s automotive industry over the next 30 years and beyond.
Chung also said the investment was expected to create employment opportunities and contribute to industrial development through cooperation with Indian businesses and other stakeholders.
Hyundai Motor Group currently employs more than 24,000 people across India. The company expects its expansion plans to generate additional employment opportunities in manufacturing, engineering, research and development, and related industries, although it has not announced a specific number of new jobs.
The group’s presence in India extends beyond Hyundai and Kia vehicle manufacturing. Its affiliates operating in the country include Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis, which are involved in automotive components, logistics, manufacturing technologies and financial services.
Hyundai has also outlined plans to expand technical training and workforce development, including a proposed Hyundai Academy for Technical Skills in Chennai. The initiative is intended to support vocational education and help develop skills required by the automotive industry.
According to the company, its major affiliates have contributed approximately $110 million to social welfare, education, skills development and community programmes in India since 2016.
The $15.5 billion commitment represents planned investment through 2032 rather than expenditure already completed. Hyundai’s October 13 announcement does not provide a year-by-year spending schedule or a complete breakdown of how the total will be allocated among manufacturing, research, supplier development and new mobility businesses.
The planned investment is intended to expand Hyundai Motor Group’s industrial and technology operations in India while increasing domestic component sourcing and strengthening the country’s position in the group’s international manufacturing and export network.
