14 October 2026 Punjab Khabarnama Bureau : South Korean automobile giant Hyundai Motor Group has announced plans to invest $15.5 billion in India between 2026 and 2032, strengthening the country’s position as a major global hub for vehicle manufacturing, automotive research and future mobility technologies.
The investment plan was announced on October 13 following a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi. The company said the investment would support its long-term growth strategy in India and expand its manufacturing, research and development capabilities.
The seven-year investment programme will cover manufacturing expansion, research and development (R&D), local supplier development and next-generation automotive technologies. Hyundai also plans to establish a dedicated investment entity in India to coordinate projects, manage capital and support partnerships with Indian businesses.
Manufacturing capacity to expand
A major part of the investment will focus on expanding production capacity at Hyundai Motor India and Kia India. The group aims to increase vehicle output to meet rising demand in India and strengthen the country’s role as an export base for international markets.
Hyundai Motor Group currently has annual vehicle production capacity of more than 1.4 million units in India. This includes 824,000 units at Hyundai’s Chennai facilities, 170,000 units at its Pune plant and 431,000 units at Kia India’s facility in Anantapur, Andhra Pradesh.
The company expects the planned expansion to support future sales growth while increasing the use of locally sourced components. Greater localisation could also create additional opportunities for Indian manufacturers supplying parts, materials and services to the automotive industry.
India has become an important market for international automakers because of its large customer base, growing demand for vehicles and established manufacturing network. Hyundai’s latest announcement reflects its intention to deepen its presence in the country over the coming years.
Around $700 million planned for research and development
Research and development will be another key area of investment. Hyundai Motor Group has outlined plans to invest approximately $700 million in its Indian R&D centre, including infrastructure for vehicle testing.
The investment is intended to strengthen local engineering capabilities and accelerate the development of next-generation automotive technologies. The company wants to build a stronger research ecosystem in India by expanding facilities and developing local technical talent.
An expanded R&D network could help Hyundai and Kia develop vehicles and technologies suited to Indian road conditions, customer requirements and market demand. It could also strengthen India’s contribution to the group’s wider international product-development activities.
Investment in suppliers and future mobility
Hyundai’s strategy extends beyond vehicle assembly and conventional manufacturing. The group plans to strengthen its local supply chain by working with Indian suppliers and encouraging greater localisation of automotive components.
The company also identified future mobility businesses as an area for potential investment. These include support for promising startups, electric-vehicle charging infrastructure, automotive financing, mobility services and vehicle recycling. The initiatives are intended to broaden the group’s presence across the automotive ecosystem.