Hyundai Motor Group Announces $15.5 Billion Investment for India's Auto Industry

Hyundai Motor Group is preparing for a major expansion in India, backed by a USD 15.5 billion investment commitment covering the period from 2026 to 2032. The programme is aimed at strengthening production capabilities, advancing automotive technology and expanding the local supply chain. It also comes at a time when both Hyundai and Kia are preparing new products for the Indian market, including electric SUVs and hybrid models.

The investment announcement followed a meeting between Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi on October 13, 2026. Along with new vehicle launches, the Group plans to develop India's role in its global manufacturing and export operations.

Hyundai Upcoming Cars to Expand Its Indian Portfolio

Hyundai has outlined an ambitious product strategy for the coming years, with 26 new models and updates planned for India by 2030. One of the key developments is a small electric SUV designed specifically for the Indian market, expected to make its debut in the coming months. It is planned to feature Pleos Connect, Hyundai's next-generation infotainment system, alongside Level 2 advanced driver assistance systems.

The brand has recently unveiled the Bayon ahead of its October 26 launch and plans to introduce its luxury brand Genesis in India in 2027. Hyundai is targeting 90% local content in its India-made vehicles by 2030, while aiming to export around 30% of its domestic production. Moreover, the investment programme is expected to help build the manufacturing and supplier base required to achieve these targets.

Kia Lines Up Hybrid SUVs and a New Electric Model

Kia is preparing to broaden its range beyond conventional petrol and diesel vehicles. Its India strategy for 2030 includes a target of approximately 4.10 lakh annual sales and a 7.6% market share. The company intends to offer eight electrified models, combining battery-electric vehicles and hybrids, by the end of the decade.

The Seltos Hybrid is expected to arrive in 2027, with hybrid versions of the Sonet and Carens planned by 2029. Kia is also working towards introducing another locally manufactured compact electric SUV by 2029, although details about its name and specifications have not been revealed. The company plans to increase its dealer network to 800 outlets by 2030 to support its expanding product range.

Hyundai-Kia Manufacturing Capacity to Expand

Hyundai Motor Group currently has a combined annual production capacity of 14.25 lakh vehicles across its Indian manufacturing facilities. The capacity is spread across Hyundai's Chennai and Pune plants and Kia's Anantapur facility in Andhra Pradesh.

Manufacturing facility	Annual production capacity
Hyundai Chennai	8.24 lakh units
Hyundai Pune	1.70 lakh units
Kia Anantapur	4.31 lakh units
Total	14.25 lakh units

R&D and Local Partnerships Receive Major Investment

Around USD 700 million, equivalent to approximately Rs. 6,641 crore, is planned for Hyundai Motor Group's Indian research and development centre. The proposed spending includes a vehicle testing track and infrastructure to strengthen local engineering work. These investments are intended to support the development and evaluation of future automotive technologies in India.

The Group also plans to establish a dedicated investment entity to coordinate funding and identify Indian partners. Its broader focus includes strengthening local suppliers, supporting startups and exploring EV charging, automotive finance, mobility services and vehicle recycling. 

Investment Expected to Create More Jobs

Hyundai Motor Group employs over 24,000 people in India and expects the investment programme to create more jobs in manufacturing, engineering and related sectors. The Group has not announced a specific employment target for the investment period.

This expansion is also expected to create opportunities for Indian component suppliers, engineering firms and emerging mobility businesses. These initiatives will support the Group's broader efforts to strengthen India's position within its global manufacturing and export network.

Car Junction Insights

Hyundai Motor Group's investment highlights India's growing importance in its global automotive strategy. Hyundai's upcoming models and Kia's planned hybrids could expand buyer choices, while increased local sourcing may benefit Indian suppliers. The focus on R&D and manufacturing could also strengthen India's export potential. However, the success of this investment will depend on how effectively the Group executes its expansion plans.

In other recent news, BMW India has opened pre-orders for the M2 xDrive Turbo Edition.