Hyundai Motor Group plans to invest $15.5 billion in India through 2032, with a significant share earmarked for manufacturing expansion and upgrades as the South Korean automaker seeks to reclaim its position as India’s second-largest passenger vehicle maker through increased capacity, new product launches and deeper localisation.
The strategy was outlined at a media briefing in Pune, following the inauguration of Hyundai’s Talegaon manufacturing facility.
Of the total investment, around 20 per cent each ($3.1 billion) will be allocated to new technologies, including artificial intelligence and startups, and to research and development. The announcement follows Chung’s meeting with Prime Minister Narendra Modi in New Delhi a day earlier.
Hyundai has already invested ₹7,000 crore in Maharashtra and plans to invest another ₹4,000 crore by 2030, taking its total commitment to the Pune facility to ₹11,000 crore.
“We will invest INR 11,000 crore in phases at this facility. Beyond expanding manufacturing capacity, the facility will drive industrial development, innovation and employment generation in the region,” Garg said.
The investment is being supported by 55 supplier partners, who have collectively invested nearly ₹4,600 crore in Maharashtra. Including Tier-II vendors, the ecosystem has created more than 18,000 jobs, with nearly half the supplier base located within a 50-km radius of the plant.
Hyundai plans to expand the Pune plant’s annual capacity from 170,000 vehicles to 320,000 vehicles by 2030, an increase of nearly 88 per cent. Combined with its Chennai operations, Hyundai Motor India’s total manufacturing capacity will approach 1.14 million vehicles annually.
The expansion is central to Hyundai’s efforts to regain market share amid intense competition from Mahindra & Mahindra and Tata Motors.
“As you know, we are going to launch 26 new models to marry this capacity so that we can get back the market share as well,” Garg said.
The Pune plant will exclusively manufacture the next-generation Venue, which will be exported to over 35 countries. The facility is equipped to produce internal combustion and hybrid vehicles and features an engine shop capable of producing 150,000 engines annually. It also incorporates AI-driven quality inspection, predictive maintenance and digital manufacturing systems.
Hyundai aims to increase localisation levels from 83 per cent to 92 per cent, strengthening its domestic supply chain.
“From 83 per cent to 92 per cent is what we are aiming for. And Maharashtra is going to play a very important role,” a senior executive said.
The automaker also plans to raise exports to 30 per cent of production, up from 24 per cent currently, while continuing its EV push with four electric vehicle launches by 2029 and the introduction of hybrid models. The $15.5-billion investment programme covers Hyundai Motor Group’s India operations, including Hyundai Motor India, Kia and other group affiliates.
Published on October 14, 2026
