Hyundai, Kia to Invest $15.5B in India’s Auto Future
Hyundai Motor Group has announced a USD 15.5 billion investment in India between 2026 and 2032. The plan includes manufacturing, research, local suppliers, and future mobility businesses, aiming to bolster India’s position as a key automotive hub and export base.
The announcement follows a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi at the Prime Minister’s Office in New Delhi on October 13, 2026. It comes as Hyundai and Kia prepare significant product expansions, with new SUVs, hybrids, and locally manufactured electric vehicles planned for India, reflecting the Group’s commitment to sustainable and innovative mobility solutions.
Hyundai’s Ambitious Plans
Hyundai plans to introduce 26 new models and updates in India by 2030. This includes an India-focused A-segment electric SUV with a next-generation infotainment system (Pleos Connect) and Level 2 ADAS. The company also aims to achieve 90% local content across its India-made vehicles by 2030, with exports expected to account for around 30% of Indian production.
Hyundai’s SUV expansion includes the Bayon, set to launch in October 2026. The luxury brand Genesis is also planned to enter India in 2027. With a focus on localization and exports, Hyundai aims to strengthen its position in the Indian market while contributing to the country’s automotive ecosystem.
Kia’s Hybrid and EV Push
Kia targets annual sales of around 4.10 lakh units and a 7.6% market share in India by 2030. The company plans to introduce eight electrified models, including EVs and hybrids, by the end of the decade, aligning with India’s growing demand for sustainable transportation.
Kia’s hybrid lineup will include the Seltos Hybrid in 2027, followed by hybrid versions of the Sonet and Carens by 2029. A locally produced small electric SUV is also in the works, with plans to expand the Indian dealer network to 800 outlets by 2030, ensuring wider accessibility and customer support.
Manufacturing and R&D Expansion
Hyundai Motor Group’s combined annual production capacity in India currently stands at 14.25 lakh vehicles. Hyundai’s Chennai facility accounts for 8.24 lakh units, Pune for 1.70 lakh units, and Kia’s Anantapur plant for 4.31 lakh units. The Pune facility’s capacity will increase in phases to meet growing demand and support exports.
The Group will invest approximately USD 700 million (approx Rs 6,641 crores) in its Indian R&D center, including a vehicle testing track. This investment will support the development of next-generation automotive technologies and create jobs across manufacturing, engineering, and related businesses. Hyundai Motor Group currently employs more than 24,000 people in India and expects the programme to generate additional employment opportunities, supporting economic growth.
