Hyundai Motor doubles down on India with $5 billion investment
Hyundai Motor will invest $5 billion to expand its manufacturing and research operations in India, the South Korean automaker said on Wednesday, putting the world's third-largest car market at the heart of its growth strategy.
The money will help to increase Hyundai India's annual production by about a third to 1.1 million vehicles by 2030, introduce 26 cars including its first hybrid vehicle tailored for India, and launch its luxury car brand Genesis in the country, Hyundai Motor CEO Jose Munoz told reporters.
The group expects the investment to generate $11 billion of revenue in India by 2030, making it Hyundai's second-largest market behind the U.S., Munoz said during the first investor day for its Indian unit.
BATTLE TO RECAPTURE MARKET SHARE
"India is a strategic priority in Hyundai's global growth vision. India isn't just important to Hyundai's global strategy. India is Hyundai's global strategy," Munoz said during the virtual presentation.
Hyundai India's shares rose nearly 3% after the news.
During nearly three decades in India, Hyundai had invested a total of $5 billion in the country.
The new outlay comes as the group is under pressure in its major U.S. market from President Donald Trump's tariffs, while also facing scrutiny over worker deaths and labour practices at its factory in Georgia.
Hyundai, which entered India in 1996, was until recently the country's second-largest carmaker, after Maruti Suzuki, with bestsellers such as the Creta and Venue SUVs.
But its market share has slipped in recent months to below 14% from a peak of about 18% as it faces increased competition from Indian rivals such as Mahindra & Mahindra, which has stepped into the second spot so far this fiscal year. By pumping fresh money into the market, Hyundai is targeting more than 15% share of the domestic market.
The Genesis luxury brand will debut in 2027, starting small but scaling “significantly” by 2032, Munoz said. The company expects the brand to enhance profitability and attract premium customers.
India will also become Hyundai's global export hub, with 30% of local output earmarked for overseas markets by 2030.
Hyundai India is planning dividend payouts of 20% to 40% of earnings, comparable to Maruti's 28.16% payout ratio in fiscal 2025 and Mahindra's 22%.
On Tuesday, Hyundai Motor India named insider Tarun Garg as the first Indian chief executive of the company, succeeding Unsoo Kim.
