Seven-year programme includes $700 million in R&D, Hyundai and Kia capacity expansion, supplier development and new mobility businesses, as the group widens its presence beyond passenger cars.
Hyundai Motor Group has announced a $15.5 billion investment programme for India between 2026 and 2032, covering research and development, manufacturing expansion, local sourcing and new mobility businesses.
The group plans to expand its Indian engineering operations and increase manufacturing capacity at Hyundai Motor India and Kia India. It will also explore businesses in automotive financing, EV charging and vehicle recycling.
A dedicated investment entity will be established in India to oversee the programme and identify local suppliers, technology partners and investment opportunities.
The initiative was discussed during a meeting between Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung in New Delhi on October 13, according to the group.
“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,” Chung said.
“Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development.”
The announcement follows Autocar Professional’s reports on Hyundai’s planned R&D expansion in Telangana, its search for a third manufacturing location and Kia’s evaluation of additional capacity at Anantapur.
$700 Million for Indian R&D
Hyundai Motor Group plans to invest approximately $700 million in its Indian R&D centre, including a vehicle testing track. The spending will expand engineering infrastructure and support the development of automotive technologies and local talent.
Autocar Professional reported in May 2025 on Telangana’s approval of a proposed Rs 8,528 crore Hyundai R&D centre, citing a New Indian Express report.
That proposal covered a Hyundai Global Innovation Research and Development Centre on 675 acres at Zaheerabad, with a test track, pilot line and prototyping facilities. The report also noted that Hyundai’s existing Hyderabad engineering centre was being expanded to support global compact passenger vehicle development.
The latest release does not explain how the $700 million allocation relates to the earlier Telangana proposal.
he group plans to expand manufacturing across Hyundai Motor India and Kia India to meet demand, increase localisation and support exports.
Its combined annual production capacity in India currently exceeds 1.4 million vehicles. This includes Hyundai’s Chennai facilities with a capacity of 824,000 units, its Pune facility with 170,000 units, and Kia’s Anantapur plant with 431,000 units.
Capacity at Pune is scheduled to increase in phases. Hyundai is also assessing a third manufacturing location to meet its longer-term requirements.
Autocar Professional reported on September 29 that Chhatrapati Sambhaji Nagar in Maharashtra and Sanand in Gujarat were among the locations under consideration.
According to people familiar with the plans, the proposed facility could eventually add around 500,000 units of annual capacity, with investment potentially exceeding $2 billion over time. The plant could come up around 2030, with capacity added in phases over five to seven years.
The discussions were at an early stage, with the location, investment schedule and product allocation yet to be finalised. Hyundai had declined to comment on market speculation.
The October 13 announcement does not identify a third plant location or disclose the additional manufacturing capacity planned under the programme.
Kia Evaluates Additional Capacity
Kia is also studying expansion at Anantapur as it prepares to introduce more products and powertrain options.
Autocar Professional reported on August 15 that Kia was evaluating a new production line with annual capacity of around 2 lakh units.
People familiar with the development said the supplier ecosystem had been sounded out as part of the assessment, although a final investment decision had yet to be taken.
Kia did not specifically confirm the proposed line, but said it would scale operations in line with market growth and customer demand. The company is targeting domestic sales of around 4.1 lakh units by 2030 and preparing a wider range of hybrid and electric products.
The group has not disclosed the investment split between Hyundai and Kia or how individual capacity projects would fit into the $15.5 billion commitment.
Moving Beyond Passenger Cars
Hyundai has explored opportunities in buses in the past and is now developing electric three-wheelers with TVS Motor Company, widening its interests in India beyond passenger cars.
Autocar Professional reported that the Hyundai–TVS electric three-wheeler is targeting a late-2027 to early-2028 launch. The companies have signed a joint development agreement to commercialise electric three-wheelers for India and additional markets.
The TVS partnership takes Hyundai into India’s electric three-wheeler market. Under the broader investment programme, the group also plans to support promising startups and expand into mobility services linked to its vehicle business.
Specialised automotive financing, EV charging infrastructure and end-of-life vehicle recycling are among the areas it will explore.
Building Local Supplier Capabilities
Hyundai Motor Group plans to invest in regional partners to increase parts localisation, develop suppliers and strengthen its Indian supply chain.
The group already operates component and service businesses in India through affiliates including Hyundai Mobis, Hyundai Transys, Hyundai Capital, Hyundai Wia and Hyundai Glovis.
It employs more than 24,000 people across the country. It expects the investment to create jobs in manufacturing, R&D, engineering and supply chains, both within its operations and through suppliers and new mobility ventures.
The programme gives India a larger role in the group’s engineering and production plans, while opening opportunities beyond its established passenger vehicle business. The proposed investments in suppliers, charging, financing and recycling would also expand its presence across the wider automotive market.
