Hyundai Motor Group To Invest ₹1.29 Lakh Crore In India By 2032

Mumbai: Hyundai Motor Group announced on October 13, 2026, a comprehensive investment strategy for India, committing USD 15.5 billion (approximately ₹1.29 lakh crore) from 2026 through 2032.

The initiative was discussed during a meeting between Indian Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung in New Delhi on October 13, 2026.

Investment Focus

The seven-year investment will span manufacturing expansion, research and development (R&D) infrastructure, local supplier cultivation for parts localisation, and future technology innovation. This aims to foster a comprehensive automotive industry ecosystem in India.

Dedicated Investment Entity

To manage this large-scale investment, the group will establish a dedicated investment entity in India. This entity will coordinate investments across R&D infrastructure, future technologies, and the broader automotive industry ecosystem.

Executive Comments

Euisun Chung, Executive Chair, Hyundai Motor Group, said India remains one of the group’s most important markets globally. He added that the investment reaffirms the group's commitment to India for the next 30 years and beyond, expecting to create more employment opportunities and support India’s industrial development.

Manufacturing Expansion

The group plans to expand manufacturing capacity across Hyundai Motor India Limited and Kia India Pvt. Limited. This expansion aims to support volume growth and localise production to meet India’s market demands, positioning India as a global export platform.

R&D Infrastructure

A complete R&D system will be established in India, focusing on infrastructure expansion and local talent cultivation. Approximately USD 700 million (around ₹5,830 crore) is planned for the R&D centre, including a vehicle testing track, to accelerate next-generation automotive technology development.

Local Supply Chain and Future Mobility

The group will strengthen its local supply chain through investments in regional partners to enhance parts localisation and support supplier development. It will also explore opportunities in new business verticals, including specialised automotive financing, EV charging infrastructure, and end-of-life vehicle recycling.

Economic Impact

Hyundai Motor Group currently employs more than 24,000 people across India. The investment is expected to create high-quality employment opportunities in manufacturing, R&D, engineering, and supply chain sectors, stimulating employment across the broader automotive ecosystem.

Production Capacity

Hyundai Motor Group has an established production capacity of more than 1.4 million vehicles annually across India. This includes HMIL’s facilities in Chennai (824,000 units capacity), HMIL’s manufacturing facility in Pune (170,000 units capacity), and Kia India’s Anantapur plant (431,000 units capacity). Pune’s capacity is scheduled to be scaled up in phases.

Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.