Hyundai, Kia parent Hyundai Motor Group to invest $15.5 billion in India till 2032

South Korean chaebol Hyundai Motor Group will invest $15.5 billion in India between 2026 and 2032, expanding manufacturing capacity at Hyundai Motor India Ltd and Kia India while strengthening research and development, local sourcing and future mobility businesses.

The seven-year investment plan, announced on Tuesday following a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi, underscores India's growing importance in the Korean automotive group's global growth strategy.

The initiative positions India as a strategic core market for the Hyundai Motor Group's future growth, emerging market expansion, and next-generation automotive innovation.

To effectively execute this large-scale investment initiative, Hyundai Motor Group will establish a dedicated investment entity in India. The entity will coordinate and execute investments across R&D infrastructure, future technologies and the broader automotive industry ecosystem.

“India remains one of Hyundai Motor Group’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,” said Euisun Chung, Executive Chair, Hyundai Motor Group.

“Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development,” Chung added.

The group plans to expand production capacity at its Hyundai and Kia facilities to cater to rising volumes and strengthen India’s position as a global export hub. Hyundai Motor Group currently has annual manufacturing capacity of more than 1.4 million vehicles in India, across Hyundai's Chennai and Pune facilities and Kia's Anantapur plant.

The South Korean automaker will also invest approximately $700 million in its Indian research and development centre, including a vehicle testing track, to accelerate the development of next-generation automotive technologies. It plans to strengthen local engineering capabilities and develop India as a key innovation hub.

The group intends to strengthen domestic sourcing by investing in regional partners and developing a more resilient local supply chain. It will also explore opportunities in EV charging infrastructure, specialised automotive financing and end-of-life vehicle recycling, besides supporting high-potential startups and expanding mobility services.

Hyundai Motor Group, which currently employs more than 24,000 people in India, said the investment is expected to generate employment across manufacturing, engineering, R&D and the supply chain.

The announcement did not specify the investment allocation between Hyundai and Kia.

Hyundai Motor Group has also established component and service operations in India through its affiliates including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis.