Hyundai Motor Group To Invest $15.5 Billion In India Through 2032
The group's Executive Chair Euisun Chung announced the investment during a meeting with Prime Minister Narendra Modi in New Delhi on Tuesday, the group said.
"India is a key strategic market for Hyundai Motor Group's future growth, expansion into emerging markets and next-generation automotive innovation. The investment will be made over seven years starting this year," Chung said.
The investment will go toward expanding manufacturing capacity, developing research and development (R&D) infrastructure, fostering local suppliers to increase parts localisation, and advancing future technologies, reports Yonhap news agency.
To implement the investment plan, the group plans to establish a dedicated investment entity in India.
With a population of 1.47 billion, India is the world's third-largest automobile market after China and the United States.
Automakers seeking to compete in India need local production facilities, as import tariffs can reach 70 percent to 110 percent.
Hyundai Motor Co. operates two plants in Chennai and another in Pune, while its smaller affiliate Kia Corp. operates a plant in Anantapur. The facilities have a combined annual production capacity of 1.4 million vehicles, which is expected to increase with further investment.
Hyundai and Kia sold a combined 852,164 vehicles in India last year, accounting for 18.7 percent of the country's passenger vehicle market and ranking second behind Maruti Suzuki India Ltd.
Hyundai Motor's cumulative vehicle sales in India are expected to top 10 million this year, nearly three decades after the South Korean automaker began local sales.
The company had sold 9.88 million vehicles in India through the third quarter of this year, having begun local production with the Santro minicar at its Chennai plant in 1998, according to the Society of Indian Automobile Manufacturers (SIAM).
At the current pace, Hyundai's cumulative sales in India are expected to surpass the 10 million mark by the end of this year.
Last year, the company sold 398,937 SUVs in India, accounting for about 70 per cent of its total sales in the country.
-IANS
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