Chung Eui-sun Meets Modi for Eighth Time, Makes 21 Trillion Won Bet on India Investment

【The Financial News, New Delhi (India) = Reporter Kim Dong-ho】Hyundai Motor Group Chairman Chung Eui-sun has made a bold move to expand investment in India, leveraging annual production capacity of 1.4 million vehicles there. Meeting for the eighth time with Prime Minister Narendra Damodardas Modi, Chung presented a medium- to long-term blueprint, saying, “We plan to invest about $15.5 billion (about 20.8 trillion won) over seven years starting this year.” The strategy is to combine investment in new production facilities, research and development (R&D), and supply chains to develop India into a key export hub for emerging markets.
On the 13th (local time), Chairman Chung held a one-on-one meeting with Prime Minister Modi at the prime minister’s residence in New Delhi, India, and discussed medium- to long-term investment plans and ways to develop India’s mobility industry.
Chairman Chung emphasized, “Hyundai Motor Group has grown alongside India over the past 30 years since entering the country in 1996. With the start of operations at our Pune plant, we have secured annual production capacity of 1.4 million vehicles. Through stable production, we will actively respond to the continued growth of India’s auto market and expand exports to emerging markets.”
This was the eighth meeting between Chairman Chung and Prime Minister Modi. The two also met during the South Korean president’s state visit to India last April and at the 2024 initial public offering (IPO) of Hyundai’s Indian subsidiary. As Prime Minister Modi pursues the ‘Make in India’ policy to promote manufacturing, Hyundai Motor Group is developing India into a key production and export hub.
The investment in India will total $15.5 billion over seven years, from this year through 2032. Key areas include building new production facilities, strengthening R&D capabilities, expanding local supply chains, and developing future technologies. The group also plans to establish a dedicated local investment firm to identify, coordinate, and execute group-level investment projects. The aim is to broaden the industrial ecosystem by increasing strategic investment in local companies and startups.
In India, Hyundai Motor Group operates Chennai Plants 1 and 2, Pune Plant 3, and Kia Anantapur Plant. Last year, it sold a total of 852,164 vehicles—571,878 by Hyundai Motor Company and 280,286 by Kia—ranking second with an 18.7% market share. With the start of operations at its new Pune plant, the group plans to expand exports to emerging markets, including the Middle East and Africa.
India is the world’s third-largest auto market, after China and the United States. Passenger-car sales this year are forecast to reach 5.25 million, up about 15% from 4.57 million last year. With import tariffs on fully built vehicles ranging from 70% to 110%, a local production base is considered a key factor in gaining a foothold in the market.
Chairman Chung emphasized, “India is a strategic country that will drive Hyundai Motor Group’s future growth and expansion in emerging markets.” Hyundai Motor Group plans to commercialize by the end of 2027 the electric three-wheeler it is co-developing with India’s TVS, and to pursue business opportunities in electric-vehicle charging infrastructure and auto finance.
[email protected] Kim Dong-ho Reporter