Hyundai Motor Group Commits USD 15.5 Billion Investment in India Through 2032

Investment Plans

Hyundai Motor Group will invest USD 15.5 billion in India between 2026 and 2032 to expand manufacturing, research, and new mobility sectors. Euisun Chung, the group's executive chair, confirmed the financial plan in New Delhi on October 13 following a discussion with Prime Minister Narendra Modi. Rushlane reports that this total equals roughly Rs 1,47,089.65 crores. The funding will span across both Hyundai and Kia operations, though specific project allocations remain unannounced.

R&D and Production

About USD 700 million will go toward the local research and development center, which features a new vehicle testing track and engineering upgrades. Current combined annual production capacity across Hyundai and Chennai, Pune, and Kia's Anantapur facilities tops 1.4 million units. Rushlane notes the exact combined capacity stands at 14.25 lakh vehicles, with Chennai holding 8.24 lakh units, Pune holding 1.70 lakh units, and Anantapur holding 4.31 lakh units. Pune factory output will rise in phases, and a third manufacturing site in either Gujarat or Maharashtra is under evaluation.

Supply Chain and Future Tech

The company will set up a dedicated local investment entity to strengthen supply chains, boost part localisation, and fund promising startups. Beyond traditional cars, the strategy targets electric vehicle charging networks, automotive financing, and old vehicle recycling. Hyundai is also partnering with TVS Motor Company to build electric three-wheelers. The broader expansion will generate new jobs across engineering and supply networks, building on the existing workforce of over 24,000 employees.

Context

Automakers increasingly view India as a primary global hub for both domestic sales and vehicle exports due to rising local demand. Large long-term capital commitments help brands scale up local component sourcing and rollout cleaner powertrain technologies efficiently.