New Delhi:Hyundai Motor Group has announced plans to invest $15.5 billion in India by 2032, highlighting the country's significance in its global expansion strategy. The announcement was made by the group's Executive Chair, Euisun Chung, during a meeting with Indian Prime Minister Narendra Modi.
According to Yonhap News Agency, the investment will focus on expanding Hyundai's manufacturing capacity, enhancing research and development infrastructure, supporting local suppliers to boost parts localization, and advancing future technologies. The initiative is set to span seven years, beginning this year.
To facilitate the investment, Hyundai plans to establish a dedicated investment entity in India. India, with a population of 1.47 billion, is the world's third-largest automobile market, following China and the United States. Local production is essential for automakers in India due to high import tariffs, which can range from 70 to 110 percent.
Hyundai currently operates two plants in Chennai and another in Pune. Its affiliate, Kia Corp., runs a plant in Anantapur. Together, these facilities have an annual production capacity of 1.4 million vehicles, which is expected to increase with the new investment. Last year, Hyundai and Kia sold a combined total of 852,164 vehicles in India, capturing 18.7 percent of the passenger vehicle market, making them the second-largest player after Maruti Suzuki India Ltd.