Hyundai to invest Rs 1.47 lakh crore in India by 2032, Pune plant to be expanded

Hyundai Motor Group has announced a large investment to strengthen its hold on the Indian automobile market. The company will invest about Rs 1.47 lakh crore in India between 2026 and 2032. The money will be used to increase vehicle production, for research and development, for vehicle testing and for work on future mobility technology.

The announcement was made after Hyundai Motor Group Executive Chairman Euisun Chung met Prime Minister Narendra Modi in New Delhi.

The group currently has three production plants in India, with a combined annual capacity of 14.25 lakh vehicles. The Hyundai plant in Chennai has a capacity of 8.24 lakh vehicles, the Pune plant 1.70 lakh, and the Kia plant at Anantapur in Andhra Pradesh 4.31 lakh. The new investment plans to expand production at Pune. This is expected to raise vehicle production in time and could also give a bigger push to exports of vehicles from India. Both Hyundai and Kia will increase production.

About Rs 6,650 crore of the total investment has been set aside for research and development. The emphasis will be on test tracks for vehicles, engineering facilities and developing next-generation automotive technology. Indian engineers are likely to get greater responsibility in the design, development and testing of vehicles.

The plan will also consider charging networks for electric vehicles, vehicle recycling, auto finance and new mobility services. Opportunities to invest in Indian technology start-ups and in companies that make components locally will be explored. There is also a plan to set up a separate entity in India for planning and carrying out the investment.

Hyundai Motor Group currently employs more than 24,000 people in India. It plans to start a Hyundai Academy in Chennai for technical skills training. The investment could create new jobs in production, engineering, research and the supplier sector. However, the actual impact and the stages at which it will be seen will depend on the implementation of the projects.