Hyundai Motor Group will invest $15.5 billion (approximately Rs 1.47 lakh crore) in India between 2026 and 2032, with plans to expand manufacturing capacity across Hyundai Motor India and Kia India. The investment will also cover research and development (R&D), local component sourcing and emerging automotive technologies.
The announcement follows a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi on October 13.
The seven-year investment plan is aimed at increasing production, strengthening the domestic automotive supply chain and supporting India’s role in the group’s global manufacturing and export operations.
Hyundai Motor Group currently has an annual production capacity of more than 1.4 million vehicles in India. This includes 824,000 units at Hyundai’s Chennai facilities, 170,000 units at its Pune plant and 431,000 units at Kia India’s manufacturing facility in Anantapur, Andhra Pradesh. The group plans to increase capacity at the Pune plant in phases, although it has not disclosed the additional production capacity planned under the latest investment programme.
The expansion comes as Hyundai and Kia look to increase production and strengthen their position in India’s passenger vehicle market. According to data cited by Moneycontrol from the Society of Indian Automobile Manufacturers (SIAM), the two brands together accounted for 18.82% of domestic passenger vehicle wholesales in FY26, down from 19.85% in FY25. Their combined wholesales grew 2.35% year-on-year to 8.74 lakh units, compared with 7.94% growth for the overall passenger vehicle market.
Around $700 million (approximately Rs 6,655 crore) of the investment will go towards Hyundai Motor Group’s Indian R&D centre, including a vehicle testing track. The funding will support the development of next-generation automotive technologies and strengthen local engineering capabilities. The group also plans to establish a dedicated investment entity in India to coordinate investments in research, future technologies and the wider automotive ecosystem.
The group will also focus on increasing the use of locally sourced components, developing domestic suppliers and building a more resilient supply chain. Its plans include exploring opportunities in electric vehicle (EV) charging infrastructure, specialised automotive financing, end-of-life vehicle recycling and new mobility services. Hyundai Motor Group also intends to support startups working on emerging mobility technologies.
Hyundai Motor Group currently employs more than 24,000 people in India and expects the investment to create additional jobs across manufacturing, engineering, R&D and supply chains. Its Indian operations also include affiliates such as Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis.
FAQs
- How much is Hyundai Motor Group investing in India?
Hyundai Motor Group plans to invest $15.5 billion in India between 2026 and 2032.
- What will Hyundai Motor Group’s investment in India be used for?
The investment will support vehicle production, research and development, local component sourcing and emerging automotive technologies.
- Will Hyundai and Kia expand their production in India?
Yes, the group plans to expand manufacturing capacity, including through a phased expansion of Hyundai’s Pune plant.
- Where are Hyundai and Kia cars manufactured in India?
Hyundai manufactures vehicles in Chennai and Pune, while Kia operates a manufacturing facility in Anantapur, Andhra Pradesh.