[Edaily Reporter Lee Bae-woon Kim Hyung-wook ] HyundaiMotor Group Chairman Euisun Chung, marking the sixth anniversary of his appointment, unveiled a massive investment plan totaling approximately $15.5 billion (about 20.7 trillion won) over seven years. This strategy is interpreted as an effort to expand production and R&D infrastructure in India—a market with significant growth potential—amid global trade uncertainties and fierce competition from Chinese manufacturers, with the aim of boosting both domestic sales and exports to Shinhung markets.

On the 13th (local time), Chairman Chung met with Prime Minister Narendra Modi at the Prime Minister’s official residence in New Delhi, India, and outlined this mid- to long-term growth strategy. “With the Pune plant now operational, we have secured an annual production capacity of 1.4 million vehicles (including KIA CORPORATION),” he said, adding, “We will respond to the growth of the Indian automotive market and expand exports to Shinhung markets.”

◇A Population of 1.4 Billion and the World’s Third-Largest Auto Market…Why India Is in the Spotlight

Behind HyundaiMotor Group’s expansion of investment in India lie the country’s massive domestic market and its strategic value as an export hub. With annual passenger car sales projected to reach 4.57 million units by 2025, India is the world’s third-largest market among individual countries, trailing only China and the United States. Given its population of approximately 1.47 billion and a relatively low vehicle penetration rate, the country is considered to have significant growth potential.

There is also a strong need for local production. Since India imposes tariffs of 70–110% on imported finished vehicles, establishing a local production base is essential to ensuring price competitiveness. Furthermore, India’s proximity to Shinhung markets such as the Middle East and Africa makes it an ideal export hub, and it also offers competitive advantages in terms of manufacturing costs. HyundaiMotor and Kia, which entered the Indian market early on, sold a total of 852,164 vehicles in India last year—571,878 Hyundai vehicles and 280,286 KIA CORPORATION vehicles—and currently hold an 18.7% market share.

The following day, on the 14th (local time), Chairman Chung also attended the groundbreaking ceremony for the new Pune plant in Talegaon, Maharashtra, in central-western India.

The Pune plant is HyundaiMotor’s new production and export hub in India, built by acquiring the former General Motors (GM) plant—which had ceased operations shortly after the COVID-19 pandemic—in 2023 and rebuilding it as a smart manufacturing hub. It is also HyundaiMotor’s third production hub in India, following the Chennai Plants 1 and 2. The current annual production capacity is 170,000 units, with plans to gradually expand it to 250,000 units by 2028 and 320,000 units by 2030.

◇Diversifying Venue Production and Transitioning to EVs… Expanding Exports

The first model to roll off the production line at the Pune plant is the compact sports utility vehicle (SUV) “All-New Venue.” In addition to sales in the Indian domestic market, the vehicle will be exported to some 30 countries, including Mexico, Chile, South Africa, and Saudi Arabia. The plant has also adopted smart manufacturing technologies, such as an artificial intelligence (AI)-based body crack detection system and approximately 200 industrial robots. In the future, the company plans to expand its production lineup to include hybrid vehicles, establishing a flexible, multi-model production system.

With the launch of the Pune plant, HyundaiMotor has secured an annual production capacity of approximately 1 million vehicles in India, combined with its Chennai Plants 1 and 2. By 2030, when the Pune plant’s capacity increases to 320,000 units, HyundaiMotor plans to raise the export share of its Indian subsidiary from the current level of about 25% to 30%.

Shifting Venue production to Pune will also free up capacity at the Chennai plants for their transition to electric vehicles. In addition to the Ioniq 5 and Creta Electric currently on the market, HyundaiMotor plans to launch a compact electric SUV targeting the Indian market in the first quarter of next year.

This investment plan for India goes beyond simply expanding production facilities. From 2026 to 2032, HyundaiMotor Group also plans to invest in strengthening its research and development (R&D) capabilities and local parts supply chain, as well as identifying future technologies and new business opportunities. The group is also developing an electric three-wheeler in partnership with local two-wheeler manufacturer TVS, with the goal of commercializing it by the end of 2027. It is also moving forward with plans to establish a specialized investment subsidiary in India to coordinate and execute group-wide investments.

HyundaiMotor Group’s expansion of its production base in India is expected to create local business opportunities for Korean parts suppliers. There are now approximately 120 Korean parts suppliers operating in India alongside HyundaiMotor and KIA CORPORATION. The number rose from 68 in 2011—when only HyundaiMotor’s Chennai plant was in operation—to 84 in 2019 following the construction of KIA CORPORATION’s Anantapur plant, and has expanded to about 120 with the recent completion of the Pune plant.

Among them, SUNGWOO HITECH CO., LTD, which manufactures body parts, operates plants in three locations—Chennai, Anantapur, and Pune—and has increased its local sales from 345.8 billion won in 2019 to 534.6 billion won in 2025, a 54.6% rise. Further sales growth is expected once the Pune plant begins full-scale operations.

◇“Global Top 3” in Just 6 Years… India as the Next Growth Engine

Today marks the sixth anniversary of Chairman Chung’s appointment as chairman of HyundaiMotor Group. Under Chairman Chung, who took office on October 14, 2020, HyundaiMotor Group rose to third place in global vehicle sales in 2022 and has maintained its status as one of the “Global Big 3” for four consecutive years through last year. While the Group has been expanding its business scope into areas such as autonomous driving and robotics, alongside growing its electrification and high-value-added vehicle lineups, the investment in India is seen as a move to extend the Group’s growth base into Shinhung markets.

At the Pune plant’s opening ceremony, Chairman Chung stated, “Ever since we first entered India 30 years ago, we have strived to earn the trust of local customers, and since the launch of our first model in the country, the Santro, India has become a key pillar in HyundaiMotor’s global growth.” He added, “The opening of this Pune plant will mark the beginning of a new chapter for HyundaiMotor in India.”