Hyundai Motor Group plans to invest over 20 trillion won (approximately $15.5 billion) in India by 2032, aiming to strengthen its local operations across production, research and development, and supply chains. The company intends to develop India as a key hub for its strategy in the Global South.
Chung Eui-sun, chairman of Hyundai Motor Group, met with Indian Prime Minister Narendra Modi on October 13 in New Delhi to discuss the company's local growth strategy and share insights on the development of India's mobility industry. This marks their eighth meeting.
During the meeting, Chung provided updates on Hyundai's operations in India, including the inauguration of a new plant in Pune, and outlined the company's mid- to long-term investment plans. He stated, "Hyundai Motor Group has established a production capacity of 1.4 million vehicles annually through the Pune plant, and we will actively respond to the continuous growth of the Indian automotive market while expanding exports to emerging countries."
Chung emphasized that India is a strategic country for Hyundai's future growth and expansion into emerging markets, announcing plans to invest approximately $15.5 billion over the next seven years.
The mid- to long-term investment strategy will not only focus on expanding production capacity through new plants but will also encompass R&D, supply chain development, and new business initiatives across the automotive ecosystem. This approach aims to position Hyundai as a leading mobility company in India by strengthening local foundations and expanding business opportunities.
To systematically and efficiently pursue these investments, Hyundai Motor Group plans to establish a local investment firm in India. This firm will be responsible for identifying, coordinating, and executing future investment projects at the group level.
Additionally, the firm will serve as a platform to systematically coordinate and execute investments in R&D infrastructure, future technologies, and the overall industrial ecosystem, while supporting the discovery and collaboration with excellent local partners through strategic investments. This initiative aims to enhance responsiveness to changes in local policies and industrial environments, ultimately strengthening Hyundai's business foundation in India.
Hyundai's decision to expand its investments in India is driven by the country's significant growth potential, supported by its status as the world's most populous nation and a key player in the Global South.
India, with a population of approximately 1.47 billion, is a major economic power. According to the International Monetary Fund (IMF), India is expected to achieve a growth rate of 7% this year and next, the highest among major economies.
The growth of India's automotive industry, the third largest in the world after China and the United States, is also robust. The passenger car market, which accounts for over 80% of the total automotive market, is projected to grow from 4.57 million units last year to 5.25 million units this year, an increase of about 15%. With its geographical advantages as an export base to regions like the Middle East and Africa, along with low manufacturing costs, India is well-positioned to enhance its manufacturing competitiveness.
* This article has been translated by AI.
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