Hyundai Motor Group to invest US$15.5 bln in India through 2032

Hyundai Motor Group has pledged to invest US$15.5 billion in India over the next seven years, highlighting the country's significance to its global expansion strategy. This commitment was revealed by Executive Chair Euisun Chung during a meeting with Indian Prime Minister Narendra Modi in New Delhi. India serves as a crucial strategic market for the group's growth, expansion into emerging markets, and advancements in next-generation automotive innovation.

The investment, which will commence this year, will be allocated towards bolstering manufacturing capacity, establishing R&D infrastructure, fostering local suppliers, and advancing cutting-edge technologies. To facilitate this plan, Hyundai Motor Group intends to set up a dedicated investment entity in India.

With a population of over 1.47 billion, India boasts the world's third-largest automobile market, following China and the United States. Automakers aiming to enter the Indian market must establish local production facilities, as import tariffs can range from 70 percent to 110 percent. Hyundai Motor Co. presently operates two manufacturing plants in Chennai and Pune, while its subsidiary Kia Corp. runs a plant in Anantapur.

These facilities possess a combined annual production capacity of 1.4 million vehicles, a figure expected to rise with additional investments.

Last year, Hyundai Motor Co. and its affiliate Kia Corp. sold a total of 852,164 vehicles in India, comprising 18.7 percent of the nation's passenger vehicle market, placing them second behind Maruti Suzuki India Ltd.