Hyundai Motor Group pledges $15.5 billion for Indian auto market

Hyundai Motor Group has unveiled a significant investment plan dedicated to the Indian automotive sector, committing approximately $15.5 billion from 2026 to 2032. This initiative aims to cement India's position as a central market for the Group's future growth, focusing on market expansion, innovation, and the development of automotive technologies.

The decision was made public following a meeting between Indian Prime Minister Narendra Modi and Euisun Chung, Executive Chair of Hyundai Motor Group, at the Prime Minister's Office in New Delhi on 13 October 2026. This investment reflects the group's ongoing commitment to enhancing its footprint in the Indian automotive landscape.

The multi-faceted investment will involve expanding manufacturing capabilities, bolstering research and development (R&D) infrastructure, and cultivating local supplier networks. A new dedicated investment entity will be established in India to ensure the effective coordination and implementation of these projects, which will also focus on fostering relationships with local partners.

Hyundai Motor Group has been a significant player in India for over 30 years, and this latest initiative aims to create numerous job opportunities while supporting the country's industrial development. The group employs more than 24,000 people in India, and the investment is expected to stimulate further employment across various sectors including manufacturing, R&D, and engineering.

According to Euisun Chung, "India remains one of Hyundai Motor Group’s most important and strategic markets globally. 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."

The investment encompasses diverse areas such as R&D, manufacturing expansion, and the exploration of new mobility ventures, including automotive financing and electric vehicle (EV) charging infrastructure. Approximately $700 million is earmarked for the development of its R&D centre, which will enhance engineering infrastructure and foster local talent in advanced automotive technologies.

Hyundai plans to scale up its manufacturing operations to meet rising demand and increase the localisation of its supply chain. Currently, the group’s manufacturing capacity in India exceeds 1.4 million vehicles annually, with plans for further expansion at existing plants in Chennai, Pune, and Anantapur.

Additionally, Hyundai is exploring the possibility of establishing a third manufacturing location. Potential sites being considered include Chhatrapati Sambhaji Nagar in Maharashtra and Sanand in Gujarat, which could add significant production capacity.

The commitment to invest beyond vehicle manufacturing is evident through Hyundai's plans to support promising startups in mobility services and explore technologies related to vehicle recycling and electric three-wheelers in partnership with TVS Motor Company.

By focusing on the development of local suppliers, Hyundai Motor Group also aims to strengthen the Indian automotive supply chain and advance its business ecosystem. This comprehensive strategy is designed to significantly contribute to India's economic landscape while solidifying Hyundai's long-term presence in the global automotive sector.