Hyundai Motor Group to invest $15.5bn in India through 2032

By Maekyung News Service

South Korea’s auto giant Hyundai Motor Group plans to invest $15.5 billion in India over the next seven years to expand production capacity, strengthen research and development (R&D), and develop new businesses in the world’s third-largest automotive market.

Chung Euisun, executive chairman of Hyundai Motor Group, announced the plan during a meeting with Indian Prime Minister Narendra Modi in New Delhi on Tuesday, local time, highlighting India’s strategic importance to the conglomerate’s future growth and expansion into emerging markets.

“With the Pune plant now operational, we have secured annual production capacity of 1.4 million vehicles,” Chung said, adding that the group would expand exports to other emerging markets.

The investment will cover R&D infrastructure, local supply chains, and emerging businesses. Hyundai Motor Group aims to raise its parts localization rate above 90 percent by 2030 and equip new models with Level 2 autonomous driving technology adapted to the Indian market.

The conglomerate has also developed a prototype electric three-wheeler with local partner TVS Motor Co., targeting commercial launch by the end of 2027. It is exploring opportunities in auto financing, EV charging, and vehicle recycling.

Hyundai Motor Group plans to establish a dedicated investment entity in India to coordinate projects involving advanced technologies, R&D, and the broader industrial ecosystem.

India’s passenger vehicle market is forecast to grow about 15 percent to 5.25 million units this year from 4.57 million in 2025. High import duties of 70 percent to 110 percent on fully assembled vehicles also make local production crucial to competitiveness.

Hyundai Motor Co. and Kia Corp. sold a combined 852,164 vehicles in India last year, securing an 18.7 percent market share and ranking second behind Maruti Suzuki. Hyundai Motor Group expects its cumulative sales in the country to reach 10 million vehicles this year, 30 years after entering the market.

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