Following the recent unveiling of the India-spec Hyundai Bayon ahead of its October 26 launch, the group has announced a much bigger strategy for the country. Hyundai Motor Group is committing a massive $15.5 billion investment in India between 2026 and 2032.
The announcement followed a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi on October 13. The capital will flow into manufacturing, advanced research, local supply chains, and future automotive tech.
Where Will the Capital Go?
A major chunk of this investment will directly fund Hyundai and Kia’s core operations. Additionally, the Group plans to form a dedicated investment entity in India to manage these funds and collaborate with local businesses.
Key areas of focus include:
- Scaling up manufacturing capacity at both Hyundai and Kia plants
- Building advanced research and development (R&D) facilities
- Constructing a dedicated vehicle testing track
- Boosting local parts sourcing to strengthen the domestic supply chain
- Engineering next-gen automotive technologies
- Funding mobility startups and new business ventures
- Expanding EV charging infrastructure and vehicle recycling projects
Out of the total package, roughly $700 million is earmarked specifically for the Indian R&D centre, which will house the new vehicle testing facility.
Hyundai already has a large manufacturing base
Hyundai Motor Group currently has production capacity of more than 1.4 million vehicles every year in India. This is spread across three major facilities.
| Plant | Annual Capacity |
|---|---|
| Hyundai Chennai | 8.24 lakh units |
| Hyundai Pune | 1.70 lakh units |
| Kia Anantapur | 4.31 lakh units |
| Total | 14.25 lakh units |
The Pune plant is expected to increase its capacity in phases. This will give the Group more room to produce vehicles for the Indian market as well as exports.
More Hyundai and Kia models are coming
The investment also ties in with the product plans already announced by the two brands.
Hyundai has said that it plans to introduce 26 new models and updates in India by 2030. The range will include SUVs, electric vehicles and other new products. The company is also working on an India-specific small electric SUV.
Kia has its own expansion plan. The company wants to have eight electrified models, including hybrids and EVs, in India by the end of the decade.
Some expected Kia products include:
- Seltos Hybrid in 2027
- Hybrid versions of the Sonet and Carens by 2029
- Another locally produced small electric SUV
- A larger dealer network with 800 outlets by 2030
Kia is targeting annual sales of around 4.1 lakh units and a 7.6% market share by 2030.
More jobs and local manufacturing
Hyundai Motor Group currently employs more than 24,000 people in India. The new investment is expected to create more employment across manufacturing, engineering, research and the supply chain.
The company also wants to increase local content in its India-made vehicles. Hyundai has previously set a target of around 90% local content by 2030, while exports are expected to make up around 30% of Indian production.
India has also become an important export base for Hyundai, making the country useful not just for domestic sales but for supplying vehicles to other markets.
A long-term India plan
Hyundai has been present in India for around three decades, and this new investment gives a clear indication of how important the country is to the Group.
With more SUVs, hybrids, EVs, higher production and more local engineering planned in the coming years, Hyundai and Kia are preparing for a much larger presence in the Indian market.