Hyundai Motor Company is using its experience of building a local manufacturing and supplier ecosystem in India as a model for expansion across global markets, with President and CEO José Muñoz saying the company's long-term investments and localisation strategy have helped it navigate growing uncertainty in the automotive industry.
Speaking at the Bloomberg New Economy Forum 2026 on Tuesday, Muñoz said India experience had shaped Hyundai's approach to building operations in other markets, particularly as automakers face changing trade policies, geopolitical disruptions and a costly transition towards new technologies.
"And then this is how we have become a kind of a global player, doing the same type of thing that we learned here in India as a kind of a blueprint, right? So becoming local in all the markets," Muñoz said.
His comments came on the same day that Hyundai Motor Group announced a $15.5 billion investment programme for India between 2026 and 2032, covering manufacturing expansion, research and development, local sourcing and new mobility businesses. The announcement followed a meeting between Hyundai Motor Group Executive Chair Euisun Chung and Prime Minister Narendra Modi in New Delhi.
The Hyundai Motor Group plans to allocate around $700 million to expanding its Indian R&D operations, including a vehicle testing track. It also intends to establish a dedicated investment entity to oversee the programme, identify local suppliers and technology partners, and explore opportunities in vehicle financing, EV charging and recycling.
The latest commitment builds on Hyundai Motor India's previously announced ₹45,000-crore investment roadmap through FY2030. While the group has not disclosed how the two programmes overlap, the plans underline India's growing importance as a manufacturing, engineering and export base for the Korean automotive group.
The company has spent three decades developing its Indian operations, beginning with its manufacturing facility near Chennai and more recently expanding to Talegaon in Pune. Hyundai and its sister company Kia now have a combined annual manufacturing capacity exceeding 1.4 million vehicles in India, according to the group's latest investment announcement.
Hyundai is preparing for further capacity expansion as demand grows in the domestic market and it pursues higher exports. In September, Autocar Professional exclusively reported that the company was evaluating a third manufacturing location, with Chhatrapati Sambhaji Nagar in Maharashtra and Sanand in Gujarat among the sites under consideration.
The proposed facility could eventually add around 500,000 units of annual production capacity, although the project remains at an early stage and no location or investment schedule has been finalised. Separately, the company is understood to have raised its calendar-year 2026 production plan by about 50,000 units to approximately 820,000 vehicles, supported by demand for SUVs, festive sales and growth in rural markets. Hyundai has not confirmed the revised production figure.
Beyond manufacturing capacity, Hyundai is deepening localisation as part of its global strategy. At its August 2026 CEO Investor Day, the company outlined plans to source 90% of vehicle content locally in India by 2030, supported by a network of more than 1,400 suppliers and over 900 local engineers. It also aims to export around 30% of its Indian production to markets across the Middle East, Africa, Asia and South America by the end of the decade.
The localisation strategy is accompanied by an expansion of Hyundai's product portfolio. The company has outlined 26 launches in India through FY2030, including new models, updates and derivatives, as it seeks to strengthen its position across SUVs and alternative powertrains.
Muñoz referred to the upcoming products during the discussion, saying Hyundai was preparing entry-level electric vehicles, electric SUVs and off-road vehicles for the Indian market.
The company's recent unveiling of the India-specific Bayon SUV, ahead of its scheduled October 26 launch, is one example of its efforts to tailor products and technologies to local customers.
Hyundai is also expanding beyond its established passenger vehicle business. Its partnership with TVS Motor Company to develop electric three-wheelers will initially target India, with plans to enter overseas markets subsequently. Autocar Professional reported that the jointly developed vehicle is expected to launch in late 2027 or early 2028, with manufacturing planned at TVS Motor's Hosur facility.
The project brings together Hyundai's design capabilities and TVS Motor's engineering, manufacturing and understanding of Indian operating conditions. It also offers an example of how vehicles developed around Indian mobility requirements could be introduced in other markets.
Long-Term Investments Despite Global Uncertainty
Muñoz said Hyundai's willingness to make long-term investments, even during difficult market conditions, was central to its strategy. He argued that companies concentrating excessively on quarterly performance could struggle to maintain investments needed for future growth.
"So India is an example, right? So not all OEMs are now in a situation to confidently invest in moments which are very critical, right? So in some companies, they focus too much on the quarterly results," he said.
Muñoz's comments come against the backdrop of declining profitability at Hyundai Motor India Limited (HMIL), which has reported year-on-year falls in consolidated net profit for two consecutive quarters. The automaker's net profit declined 22.2% to ₹1,255.63 crore in the fourth quarter of FY26, followed by a sharper 35.1% drop to ₹888.62 crore in the first quarter of FY27.
Muñoz added that Hyundai had maintained its commitment to electrification despite changes in government incentives and investment priorities across the automotive industry.
The company is targeting a contribution of more than 50% from CNG, electric and hybrid vehicles combined in its Indian sales mix by FY2030. This multi-powertrain approach is intended to address different consumer requirements while the market transitions towards cleaner mobility technologies.
Muñoz also highlighted the challenges posed by US tariffs, changes in electric vehicle policies, geopolitical conflicts and growing competition from Chinese manufacturers in Europe.
He cautioned that rapidly changing regulations could undermine investment decisions in an industry where manufacturing facilities and related infrastructure are expected to remain operational for several decades.
"What is very important is the consistency of the regulation. When it changes very, very fast in an environment where you make investments that are going to last 30, 40 years, that's a big harm," he said.
To manage these challenges, Hyundai is relying on its broader business ecosystem, which extends beyond automobile manufacturing into steel production, logistics, distribution, robotics, autonomous driving and construction.
"In our group, for example, we not only produce vehicles, we produce the steel. We do the logistics for us and for all the competitors. We do the distribution," Muñoz said.
He argued that having these capabilities within the wider group gives Hyundai greater flexibility to respond to changes in global trade and operating conditions.
Technology is also becoming an increasingly important part of the strategy. Describing Hyundai as a physical AI company, Muñoz said the automaker plans to deploy humanoid robots in its manufacturing operations to improve productivity, quality and costs.
Hyundai is targeting production of Atlas humanoid robots from 2028 in the United States, with planned annual capacity of 30,000 units. The initiative forms part of its broader efforts to integrate artificial intelligence and automation into vehicle manufacturing.
For Muñoz, the central challenge is balancing the need to respond quickly to changing market conditions with maintaining a consistent long-term direction.