Hyundai Motor Group commits $15.5 billion to India over seven years

South Korean Hyundai Motor Group has committed to invest $15.5 billion in India between 2026 and 2032 through a dedicated investment entity, spanning manufacturing capacity expansion, research and development, local supplier development and investments in startups.

In a statement released on Tuesday evening, the group said the investment which will cover both Hyundai Motor India and Kia was discussed during a meeting between executive chair Euisun Chung and Prime Minister Narendra Modi in New Delhi. The investment is expected to create additional employment opportunities across manufacturing, R&D, engineering and supply chains, as per its statement.

The commitment, the group's largest investment pledge for India, comes two years after its automobile unit, Hyundai Motor India, raised ₹27,870 crore through its initial public offering in October 2024. During Hyundai India's first investor day last year in October, the company committed $5.4 billion investment till FY30.

The latest investment follows a ₹77,500 crore commitment for five years by Japanese auto giant Suzuki earlier in August, underlining the growing interest of global automakers in expanding their presence in India.

“India remains one of Hyundai Motor Group’s most important and strategic markets globally. The past 30 years have been defined by our commitment to India. This investment reaffirms our commitment to India for the next 30 years and beyond,” Chung said in the statement.

The investment commitments come after a strong year for India's passenger vehicle market, supported by the goods and services tax (GST) cuts announced last year. Passenger vehicle sales grew 8% year-on-year to about 4.6 million units in FY26, according to the Society of Indian Automobile Manufacturers (Siam).

The company said the investment will span manufacturing, research and development, supplier localization and new mobility businesses.

On the manufacturing front, it said the group plans to expand capacity at Hyundai Motor India and Kia India to cater to rising demand and strengthen India's role as an export base. The group currently has an annual production capacity of more than 1.4 million vehicles across Hyundai's Chennai and Pune facilities and Kia's Anantapur plant.

Alongside manufacturing, the group plans to invest about $700 million in its Indian R&D centre, including a vehicle testing track, to develop next generation automotive technologies. It said that the investment is aimed at strengthening local engineering capabilities and positioning India as a research and innovation hub for the group.

The group also plans to deepen its local supplier network through investments in regional partners, with a focus on increasing parts localization as it prepares for expansion of its electric vehicle portfolio.

“The group aims to lead India's future mobility ecosystem through strategic investments in emerging opportunities. This includes support for high-potential startups and expansion into new mobility services integrated with its core vehicle business,” the statement read.

The investment commitment comes as Hyundai Motor Group looks to strengthen its position in India, where its flagship carmaker has been losing ground to domestic rivals. Hyundai Motor India’s domestic sales fell 2% to 584,906 units in FY26, pushing it to fourth place in the industry rankings after 16 years as the country’s second-largest carmaker. The company has acknowledged that a slower pace of new model launches and upgrades than its rivals hurt its performance.

The group has also identified India as a strategic market for its next phase of growth. In January 2026, Hyundai Motor India appointed Tarun Garg as its first Indian managing director and chief executive officer, as the company prepared to step up investments in manufacturing, localization and new products.

Kia India, the group’s other passenger vehicle business in the country, has established itself among the top six carmakers since entering India in August 2019, nearly 23 years after Hyundai began operations in 1996.

The investment push also comes as both brands prepare to expand their product portfolios. Hyundai Motor India plans 26 product launches by 2030, including seven new nameplates, spanning different powertrains and vehicle segments.

Kia, meanwhile, plans to expand its Indian line up to 10 models by 2030, of which eight will be electrified vehicles, including electric and hybrid models. Its latest investor day strategy targets annual sales of 410,000 units in India by 2030.

Ayaan Kartik is a Delhi-based journalist tracking the ever-growing world of automobiles and their components. With an experience of five years ranging from short-form news at Inshorts to longform journalism at Outlook Business magazine, he has dabbled into different storytelling formats. At Mint, he tries to regularly mix story styles, from longforms to crisp news stories. He has completed his graduation from Delhi University where he developed a liking for reading and writing about the world we live in today. Apart from automobiles, Ayaan likes to read up on geopolitics which has increasingly affected various sectors of the economy. Of all the promises journalism holds, he likes the fact that it allows a person to simply explain to readers about what is happening in the world. And what better sector than automobiles, which everyone since growing up has seen and felt connected to. Whether it is China's increasing grip on automobiles to growing affection for EVs in the country, Ayaan likes to connect his love for geopolitics and data to his stories as readers become more demanding on the types of stories they want.

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