Pune: Hyundai Motor will invest Rs 45,000 crore to expand its manufacturing and research operations to make the world’s third-largest car market at the heart of its growth strategy, its President & CEO Jose Munoz said on Wednesday.
He told reporters that this investment will help South Korean automaker to increase its annual production by about a third to 1.1 million vehicles by 2030 in India, introduce 26 cars, including its first hybrid vehicle and launch its luxury car brand Genesis in the Indian market.
The group expects the investment to generate $11 billion of revenue in India by 2030, making it Hyundai’s second-largest market after the US, Munoz said during the first investor day for its Indian unit.
“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 per cent after the news.
During nearly three decades in India, Hyundai had invested a total of $5 billion in the country.
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 per cent from a peak of about 18 per cent as it faces increased competition from Indian rivals such as 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 per cent share of the domestic market.
Munoz announced that its Genesis luxury brand will debut in 2027, starting small but scaling “significantly” by 2032. The company expects the brand to enhance profitability and attract premium customers.
India will also become Hyundai’s global export hub, with 30 per cent of local output earmarked for overseas markets by 2030.
Hyundai India is planning dividend payouts of 20 to 40 per cent of earnings, comparable to Maruti’s 28.16 per cent payout ratio in fiscal 2025 and Mahindra’s 22 per cent.
On Tuesday, Hyundai Motor India named insider Tarun Garg as the first Indian chief executive of the company, succeeding Unsoo Kim.