Hyundai Motor Group to Invest $15.5 Billion in India Over Next Seven Years
NEW DELHI – In a significant move for the automotive sector, Hyundai Motor Group Executive Chair Chung Euisun announced plans to invest $15.5 billion in India over the next seven years. This announcement came during his meeting with Prime Minister Narendra Modi, highlighting the company’s commitment to strengthening its presence in the country, particularly after the opening of a new manufacturing plant in Pune, Maharashtra.
During their meeting at the Prime Minister’s office in New Delhi, Chung and Modi discussed various opportunities for investment, including building new production facilities, enhancing research and development (R&D) capabilities, and strengthening local supply chains. This marks the eighth meeting between Chung and Modi, reflecting an ongoing partnership aimed at advancing India’s industrial landscape in line with Modi’s initiatives like “Make in India” and “Viksit Bharat 2047.”
Hyundai plans to significantly enhance its local R&D efforts by expanding its engineering resources and recruiting top talent from India. The company aims to accelerate the creation of locally designed products and technologies.
In addition to local development, Hyundai is forming closer ties with Indian companies. They are collaborating with TVS Motor Company to produce an electric three-wheeler, which is expected to launch commercially by late 2027. Hyundai is also looking to broaden its scope in various areas such as mobility services, auto financing, electric vehicle charging networks, and recycling of end-of-life vehicles.
To manage these initiatives effectively, Hyundai will set up a dedicated investment unit in India. This new arm will focus on identifying strategic partnerships with local firms and investing in the overall automotive ecosystem.
Chung expressed pride in Hyundai’s journey in India, stating that the company has built its operations over the past 30 years since entering the market in 1996. “With our new plant in Pune now operational, we have the capacity to produce 1.4 million vehicles annually,” he remarked.
Apart from the Pune facility, Hyundai operates two plants in Chennai and has a manufacturing hub for Kia in Anantapur. This expanded production capacity not only helps Hyundai cope with the high auto tariffs in India, which range between 70 and 110 percent, but also allows them to cater to the increasing demand for vehicles in the country.
India stands as the third-largest automobile market in the world, just behind China and the United States. The passenger vehicle segment is expected to grow by nearly 15 percent, increasing from 4.57 million units in 2025 to 5.25 million units in 2026.
Moreover, Chung pointed out that India serves as a strategic gateway for expanding into markets in the Middle East and Africa, thanks to its lower production costs and favorable location for exports.
Beyond business growth, Chung reaffirmed Hyundai’s dedication to corporate social responsibility. The company is committed to making social contributions, having invested around $110 million between 2016 and 2025 across its brands, including Hyundai, Kia, and Hyundai Mobis.
