Hyundai Motor Group will invest $15.5 billion in India between 2026 and 2032, expanding manufacturing capacity, research and development (R&D) infrastructure and localisation of components as it seeks to strengthen the country’s position as a global automotive hub.

The investment plan was discussed at a meeting between Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister’s Office in New Delhi on Tuesday.

The seven-year investment will span manufacturing expansion, future technology development, local supplier partnerships and infrastructure development, the South Korean automotive major said in a statement.

The Group plans to expand production capacity across Hyundai Motor India Ltd (HMIL) and Kia India Pvt Ltd to cater to rising demand and improve localisation. India will also be positioned as one of the Group’s leading global export platforms.

To coordinate the investment programme, Hyundai Motor Group will establish a dedicated investment entity in India. It will oversee investments in R&D, future technologies and the wider automotive ecosystem, besides identifying local partners and strengthening supplier collaborations.

“India remains one of Hyundai Motor Group’s most important and strategic markets globally. The past 30 years have been defined by our commitment to India. This investment reaffirms our commitment to India for the next 30 years and beyond,” Mr. Chung said.

“Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development,” he added.

The Group plans to strengthen its Indian R&D capabilities through infrastructure expansion and talent development. It has earmarked approximately $700 million for its R&D centre, including a vehicle testing track, to accelerate next-generation automotive technology development and establish India as a key innovation hub.

Hyundai will also explore opportunities in specialised automotive financing, electric vehicle (EV) charging infrastructure and end-of-life vehicle recycling.

Employing more than 24,000 people in India, the Group expects the investment to generate high-quality jobs across manufacturing, engineering, R&D and supply chains.

Its annual production capacity in India exceeds 1.4 million vehicles, comprising HMIL’s Chennai facility (824,000 units), its Pune plant (170,000 units) and Kia India’s Anantapur facility (431,000 units). Pune’s capacity will be scaled up in phases, further expanding the Group’s manufacturing footprint.

India’s automobile industry needs to move beyond local assembly and build domestic capabilities across the entire value chain—from raw materials and components to advanced technologies and final systems—to reduce supply-chain risks and strengthen global competitiveness, industry leaders said.

Tata Motors Managing Director Shailesh Chandra said India’s localisation push should go beyond import substitution and focus on establishing the country as a major global automotive manufacturing and mobility hub.

“The opportunity before is much larger than just import substitution,” Chandra said, adding that India should aim to become “one of the world’s leading automotive manufacturing and mobility hubs.”

As vehicles become increasingly technology-intensive, retaining a larger share of value creation within India will be critical, he said. The vehicles of the future will rely heavily on electronics, semiconductors, sensors, power electronics, batteries, motors, software, connectivity and advanced materials.

“Hence to ensure global competitiveness, much of the value creation should reside within the country,” Chandra said.

He called for localisation to expand beyond conventional components to cover the full value chain, including raw materials, processing, components, sub-components and final systems. The recent disruption in rare-earth magnet supplies, he said, demonstrated how dependence on even a relatively small input could expose the industry to strategic supply-chain vulnerabilities.

Maruti Suzuki India Managing Director and CEO Hisashi Takeuchi said shifting global supply chains were creating an opportunity for India to emerge as a trusted manufacturing and supply-chain base.

“Cost is no longer the only consideration. Reliability and continuity have become equally important,” Takeuchi said.

Hyundai Motor India Chief Operating Officer Tarun Garg said India’s trade profile highlighted the need for faster technological capability-building. “Our exports remain concentrated in relatively mature technologies, while our imports are increasingly dominated by advanced, higher-value technologies, he said.

India must therefore “accelerate and leapfrog towards greater self-reliance” by designing, developing and manufacturing next-generation technologies domestically, Garg said. These include semiconductor chips, electric-vehicle battery cells and power electronics.