Hyundai Kia Announce Rs. 1.47 Lakh Crore India Investment: New Cars, EVs and Manufacturing Expansion
Hyundai Motor Group has announced a major investment of USD 15.5 billion in India between 2026 and 2032. The investment translates to around Rs. 1.47 lakh crore and will cover Hyundai Motor India and Kia India operations. The group plans to expand manufacturing capacity, strengthen research and development, develop local suppliers and invest in future mobility technologies.
The announcement followed a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi on October 13, 2026. Hyundai Motor Group has identified India as an important market for future growth and plans to increase the country’s role in its global manufacturing and export strategy.
Hyundai and Kia to Expand Manufacturing Capacity
A major part of the investment will go towards expanding manufacturing capacity in India. Hyundai Motor Group currently has combined annual production capacity of more than 1.4 million vehicles across its Indian facilities.
Hyundai’s Chennai facilities have an annual capacity of 8.24 lakh units, while its Pune plant has a capacity of 1.70 lakh units. Kia’s manufacturing facility in Anantapur, Andhra Pradesh, has an annual capacity of 4.31 lakh units. The group plans to increase production capacity further to support higher domestic demand and exports.
The Pune facility will see capacity expansion in phases. Hyundai Motor Group also wants India to become one of its major global export bases as production and localisation increase.
USD 700 Million Investment Planned for R&D
Research and development will form another major part of the investment programme. Hyundai Motor Group plans to invest around USD 700 million in its Indian R&D centre. This investment will also include a vehicle testing track.
The group wants to strengthen local engineering capabilities and develop next-generation automotive technologies in India. The expanded R&D infrastructure will support vehicle development and technology programmes for the Indian market and other global markets.
Hyundai Motor Group also plans to develop local talent and increase collaboration with Indian suppliers. The company expects these investments to strengthen India’s position within its global technology and manufacturing network.
More Localised Components and Supplier Development
Hyundai Motor Group will also use the investment to strengthen its local supply chain. The company plans to work with regional suppliers and increase parts localisation for vehicles produced in India.
The group will establish a dedicated investment entity in India to coordinate the investment programme and identify potential local partners. This entity will also support strategic partnerships and supplier development.
The investment programme extends beyond traditional vehicle manufacturing. Hyundai Motor Group plans to explore opportunities in EV charging infrastructure, automotive financing, vehicle recycling and other mobility-related businesses. The group will also support startups working on future mobility technologies.
Hyundai Plans 26 New Models and Updates by 2030
Hyundai has separately outlined an ambitious product roadmap for India. The company plans to introduce 26 new models and updates by 2030. The portfolio will include SUVs, electric vehicles and other new products.
Hyundai is also preparing an India-focused A-segment electric SUV. The upcoming model is expected to feature the company’s Pleos Connect next-generation infotainment system and Level 2 ADAS technology.
The company is also expanding its SUV range in India. The new Bayon SUV is scheduled to launch in October 2026, while Hyundai’s luxury brand Genesis is planned to enter the Indian market in 2027. These product plans will complement the group’s wider investment programme.
Kia to Add More Hybrid and Electric Models
Kia will also expand its electrified vehicle portfolio in India. The company has previously outlined plans to offer eight electrified models, including EVs and hybrids, by the end of the decade.
The Kia Seltos Hybrid is expected to arrive in 2027. Hybrid versions of the Sonet and Carens are also planned for 2029. Kia has additionally outlined plans for another locally produced small electric SUV by 2029.
The company is targeting annual sales of around 4.10 lakh units and a 7.6 percent market share in India by 2030. Kia also plans to expand its Indian dealer network to around 800 outlets by the end of the decade.
More Jobs Expected Across Automotive Sector
Hyundai Motor Group currently employs more than 24,000 people in India. The company expects the new investment programme to create additional employment opportunities across manufacturing, engineering, research and development and supply chains.
The wider investment in suppliers, technology companies and future mobility businesses could also expand employment across the automotive ecosystem. However, Hyundai Motor Group has not disclosed a specific number of new jobs that the investment will create.
The USD 15.5 billion programme will run until 2032 and represents a long-term expansion of Hyundai and Kia’s manufacturing, technology and supplier operations in India.
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