Hyundai plans US$15.5bn investment to expand business in India
Hyundai plans more research and mobility services in India, alongside a joint electric three-wheeler project with TVS Motor Company.
- Hyundai Motor Group will invest US$15.5 billion in India over the next seven years to expand its business.
- The investment will fund diversification into mobility services, vehicle financing, charging networks, and vehicle recycling, in addition to manufacturing.
- A significant portion of the funds will be used to strengthen local research and development to create products and technologies specifically for the Indian market.
- The expansion aims to increase annual production capacity to 1.4 million units and establish India as an export hub for markets in the Middle East and Africa.
Hyundai Motor Group plans to broaden its Indian business through mobility services, vehicle financing, charging networks and vehicle recycling, alongside further manufacturing investment.
Executive Chair Euisun Chung pledged US$15.5 billion over the next seven years during talks with Prime Minister Narendra Modi.
A dedicated investment arm will be established in India to coordinate the expansion.
It will identify strategic opportunities, develop partnerships with local companies and invest in the wider automotive ecosystem.
Research is another priority.
Larger engineering facilities and the recruitment of leading Indian talent are intended to substantially strengthen Hyundai’s domestic research and development capabilities, accelerating work on products and technologies adapted for the local market.
The group’s collaboration with Indian two-wheeler manufacturer TVS Motor Company has already produced an electric three-wheeler prototype.
The partners are targeting a commercial launch by late 2027.
India offers both a growing customer base and opportunities for local production.
Already the world’s third-largest automotive market after China and the United States, its passenger vehicle segment is projected to grow almost 15%, from 4.57 million units in 2025 to 5.25 million in 2026.
Hyundai’s expanded manufacturing capacity helps cushion the group against automotive tariffs of 70–110% while meeting rising demand.
The recently opened Pune facility in Maharashtra joins Hyundai’s two Chennai plants and Kia’s manufacturing hub in Anantapur.
“With the operational launch of the Pune plant, Hyundai Motor Group has secured an annual production capacity of 1.4 million units,” Chung told Modi.
Exports also feature in Chung’s strategy.
He identified India as a gateway to Global South markets, including the Middle East and Africa, where competitive production costs and geographical proximity offer advantages for expanding overseas sales.
Hyundai announced on Tuesday that the meeting had taken place earlier that day at the prime minister’s office in New Delhi.
New factories, domestic research, stronger local supply chains and future mobility solutions were discussed at the pair’s eighth meeting, continuing their dialogue on India’s industrial transformation and Modi’s “Make in India” and “Viksit Bharat 2047” development agendas.
Chung told Modi that Hyundai was preparing for its next major milestone after growing alongside India for 30 years since entering the market in 1996.
He also emphasised its commitment to corporate social responsibility, including approximately US$110 million in social contributions by Hyundai, Kia and Hyundai Mobis between 2016 and 2025.
Source: Asia News Network
