Hyundai Motor Group to allocate 20 pct of US$15.5 bln India investment to AI, new businesses

Pune, India - Hyundai Motor Group has outlined its ambitious plan to invest around US$15.5 billion in India over the next seven years, with a significant portion earmarked for new ventures and artificial intelligence (AI), according to a senior executive. Vice Chairman Jang Jae-hoon revealed the strategy during the inauguration of their new manufacturing plant in Pune, western India, on Wednesday.

The company intends to allocate approximately 60 percent of the investment to upgrading existing facilities and expanding production capacity. However, about 20 percent of the investment is dedicated to fostering new businesses, including AI-driven initiatives and startups. By 2030, Hyundai Motor plans to introduce 20 variants of its internal combustion engine vehicles and six electric and hybrid variants in the Indian market.

CEO Jose Munoz emphasized the company's commitment to eco-friendly vehicles, with an aspiration for electric, hybrid, and hydrogen fuel-cell models to constitute roughly half of their sales by 2030. This new plant brings Hyundai Motor's total production facilities in India to three, with a combined annual capacity of nearly one million vehicles.

Hyundai Motor and its subsidiary Kia Corp. together sold 852,164 vehicles in India last year, securing an 18.7 percent share of the country's passenger vehicle market, placing them second behind Maruti Suzuki India Ltd.