Shares of Hyundai Motor India Ltd rose 1.39% to ₹1,969 on the BSE after the Group announced a $15.5bn investment plan for India covering 2026‑2032.
The capital will fund a $700m upgrade of the Indian R&D hub, including a new vehicle test track, and a new manufacturing line at Hyundai Motor India Ltd and Kia India Pvt Ltd. Manufacturing capacity is set to increase by 20% by 2028, with the aim of boosting localisation to 30% of parts. These moves are part of a broader strategy to position India as a core innovation hub for the Group.
Local supplier collaborations will be bolstered, with an estimated 10% increase in component localisation projected by 2028, aiming to strengthen supply‑chain resilience. The Group will also support regional partners through a dedicated investment entity that will coordinate capital and talent development.
Employment gains are slated at 5,000 direct jobs in manufacturing and 2,000 in R&D and supply‑chain operations, reflecting Hyundai’s commitment to local talent. This aligns with the Group’s goal of creating 24,000 jobs across India by 2032.
In a market where Tata Motors and Mahindra & Mahindra have already invested $2bn and $1.5bn respectively, Hyundai’s move makes it the largest foreign automaker stake in India. The investment coincides with a growing trend of OEMs expanding in emerging markets amid rising EV adoption.
Analysts now forecast a 12% YoY revenue lift for Hyundai Motor India in FY27, with a 5% margin improvement by 2029, as the Group ramps up production. The company will report Q2 earnings on December 15, which investors are keen to see for guidance on future growth. Market watchers anticipate that the new investment will translate into a higher dividend payout, potentially boosting the stock’s long‑term returns.