Hyundai Bets Big on India with Rs 45,000 Crore Investment

Hyundai Motor Company is making significant strides in India, positioning the country as its second-largest market after the United States. CEO Jose Munoz recently revealed plans to invest Rs 45,000 crore to launch 26 new products by 2030. This move underscores the growing importance of the Indian market, which has seen a shift towards localization in recent years.

During an ‘Investor Day’ event in Mumbai, Munoz emphasized that India is now more critical to Hyundai than China, stating, “We see India as a market that is developing.” He highlighted the need for increased localization and investment in manufacturing technology to establish India as a robust domestic market and a key export hub.

Hyundai’s strategy reflects a broader trend of moving from globalization to localization, which has become essential in the current economic climate. Munoz acknowledged the challenges posed by changing tariffs but noted that this environment also offers competitive advantages for companies willing to adapt.

In an exciting development, Hyundai appointed Tarun Garg, the company’s current COO and wholetime director, as its next MD and CEO, effective January 1, 2026. Garg's appointment marks a significant milestone as he becomes the first Indian national to hold this position in Hyundai's 29-year history.

With electric vehicle demand not meeting expectations globally, Hyundai has shifted its focus towards hybrid vehicles. Munoz announced that India will receive eight hybrid models, making it the largest lineup by any car brand in the country. This strategy aims to deliver hybrids faster to Indian consumers.

By 2030, Hyundai plans to expand its portfolio from 14 to 18 car models, including five battery electric vehicles. The company will also introduce a compact electric SUV tailored for Indian consumers, designed for both long highway journeys and short urban commutes.

As the fourth largest market for Hyundai, India is expected to contribute 15% to the company’s global sales target of 5.55 million units. Hyundai aims to strengthen its sports utility vehicle (SUV) lineup and enter new product segments.

Hyundai's plans include starting manufacturing of electric vehicles at its Chennai facility and enhancing supply chain localization for high-tech components. Furthermore, the company seeks a license from India's central bank to launch a non-banking finance company, Hyundai Capital, by 2026, offering automotive loans and leasing options.

As competition intensifies from Tata Motors and Mahindra & Mahindra, Hyundai's strategic investments and product launches could help it regain a stronger position in the Indian automobile market.