South Korean automaker Hyundai Motor Group (HMG), comprising Hyundai Motor and Kia Corporation, announced that it plans to invest USD 15.5 billion in India over a period of seven years, between 2026 and 2032, to position the country as a “strategic core market for the group’s future growth, emerging market expansion, and next-generation automotive innovation.”
The investment plan was discussed during a meeting between Indian Prime Minister Hon’ble Shri Narendra Modi Ji and Hyundai Motor Group chairman Euisun Chung at the Prime Minister’s Office in New Delhi on 13 October 2026.
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The investment plan aims to “foster a comprehensive automotive industry ecosystem” in India, and will include manufacturing capacity expansion, research and development (R&D) infrastructure development, supplier development to help increase local parts sourcing, and future technology innovation.
HMG said it will establish a dedicated investment entity in India to “effectively execute this large-scale investment initiative.” The role of the new unit will be to coordinate and execute investments across R&D infrastructure, future technologies and the broader automotive industry ecosystem. It will also serve as a platform to identify outstanding local partners, support strategic partnerships and foster collaboration with leading local suppliers.
Euisun Chung said in a statement: “India remains one of HMG’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. Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development.”
HMG outlined the individual areas of investment in more detail:
Manufacturing Expansion: HMG plans to expand manufacturing capacity across Hyundai Motor India Ltd (HMIL) and Kia India, to support significant volume growth while ensuring the local supply chain can meet demand. This expansion will position India as one of the leading global export “platforms” for HMG.
R&D Infrastructure and Technology: HMG plans to invest US$ 700 million to establish a complete R&D system in India through infrastructure expansion and local talent development. A key focus will be to strengthen the technological competitiveness of HMG’s local products through the Indian R&D centre. The planned investment includes a vehicle testing track, which will help accelerate next-generation automotive technology development and establish India as a core innovation hub.
Local Supply Chain Resilience: HMG will strengthen its local supply chain and support supplier development in India through strategic investments in regional partners. These partnerships will enhance parts localization, identify high-quality local suppliers and build a stable, resilient supply-chain ecosystem across the Indian automotive industry.
Future Mobility Innovation: HMG 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 that integrate with its core vehicle business. HMG will also explore opportunities in new business verticals including specialized automotive financing, EV charging infrastructure, and end-of-life vehicle recycling.
HMG pointed out that it currently employs more than 24,000 people across India, and has a production capacity of more than 1.4 million vehicles annually, including 824,000 units/year at HMIL’s facilities in Chennai; 170,000 units/year at HMIL’s manufacturing facility in Pune; and 431,000 units/year at Kia India’s Anantapur plant. Production capacity at the Pune plant is scheduled to be scaled up in phases.
