Hyundai and Kia Plan Massive Investment for New Cars and EVs in India

Hyundai Motor Group will invest USD 15.5 billion, or about Rs 1,47,089.65 Crores, in India between 2026 and 2032. The funding will build up manufacturing, research and development, local suppliers, and future mobility projects across the company's Indian operations.

Growth Plans

The funding plan comes after a meeting in New Delhi on October 13 between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi. Hyundai plans to roll out 26 new models and updates in India by 2030, which includes an upcoming A-segment electric SUV featuring a next-generation infotainment system and Level 2 ADAS. The Bayon SUV will launch on October 26, while the luxury brand Genesis is set to enter the Indian market in 2027.

Kia Expansion

Kia aims to reach 4.10 lakh annual sales units and capture a 7.6 percent market share by 2030. The brand will offer eight electrified models, including hybrids and EVs, by the end of the decade. A Seltos Hybrid will launch in 2027, followed by hybrid versions of the Sonet and Carens by 2029, alongside a new small electric SUV built locally by 2029. Kia also plans to expand its dealer network to 800 outlets by 2030.

Production And Jobs

Hyundai Motor Group currently has a total annual production capacity of 14.25 lakh vehicles in India, spread across Chennai, Pune, and Anantapur. The Pune facility will increase its capacity in phases to meet local demand and boost exports. The Group will allocate about USD 700 million, or roughly Rs 6,641 crores, for its Indian research and development centre, including a vehicle testing track. A dedicated investment entity will coordinate funding, support startups, and explore EV charging, vehicle recycling, and automotive financing. The company currently employs over 24,000 people in India and expects the new programme to create more jobs.

Context

Automobile manufacturers are pouring massive capital into India as the domestic market shifts rapidly toward electric vehicles and hybrid technology. Large automotive investments of this scale typically aim to build a strong local supply chain to reduce production costs and meet government manufacturing targets. India's growing middle class and rising demand for personal transport make it a key global battleground for major carmakers.