Euisun Chung, Chairman of Hyundai Motor Group, announced on the 13th (local time) that the group will invest approximately USD 15.5 billion (about KRW 20.8 trillion) in India over the next seven years during a meeting with Indian Prime Minister Narendra Modi. He also expressed an intention to increase annual vehicle production in India to 1.4 million units and position the country as Hyundai Motor Group’s next-generation production hub and a key market.

At an individual meeting with Prime Minister Modi held on the 13th at the Prime Minister’s residence in New Delhi, Chung stated, “Hyundai Motor Group has secured an annual production system of 1.4 million units through the operation of the Pune plant,” adding, “We are planning to invest about USD 15.5 billion in India over the seven years starting this year.”

Since first entering India in 1996, Hyundai Motor Group has begun to substantially increase its investment in the country in this 30th anniversary year. A representative example is the investment in Hyundai Motor’s new Pune plant, mentioned by Chung.

This move aims to make India a new automobile production base, following Korea and the United States, to meet local demand while using it as a springboard for expansion into other emerging markets. Chung also emphasized to Prime Minister Modi that day, “We will ensure stable automobile production in India to actively respond to the continued growth of the Indian automotive market and expand exports to emerging countries.”

The meeting between Chung and Prime Minister Modi was their eighth. In April this year, Chung accompanied President Lee Jae-myung’s state visit to India as part of the economic delegation and attended a luncheon hosted by Prime Minister Modi. The two also held an individual meeting in 2024 on the occasion of the listing of Hyundai Motor’s Indian subsidiary on the Indian stock market.

Hyundai Motor Group plans to invest in India going forward in areas including △construction of new plants △strengthening of research and development (R&D) capabilities △enhancing the competitiveness of the local supply chain △development of future new technologies. A Hyundai Motor Group representative stated, “This investment aims to firmly establish the group as India’s leading mobility company by strengthening its local foundation and expanding business opportunities,” adding, “We will also pursue the establishment of an investment-specialized corporation within India.”

India is an economic power with a population of 1.47 billion. In the automobile market, it ranks as the world’s third-largest country after China and the United States. However, with import tariffs on finished vehicles reaching 70–110%, it has long been considered essential to secure local production bases. In 2023, Hyundai Motor Group sold 852,164 vehicles in India—571,878 Hyundai units and 280,286 Kia units—achieving a market share of 18.7%.

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