One-fifth of Hyundai Motor Group's $15.5 billion India investment earmarked for AI, new businesses

Hyundai Motor Group plans to allocate about 20 percent of its $15.5 billion investment in India over the next seven years to the country's new businesses, including AI and startups, a senior executive said.

Hyundai Motor Group Vice Chairman Jang Jae-hoon unveiled the plan Wednesday after the Korean automotive group announced the investment initiative through 2032 alongside the opening of its new plant in Pune, western India.

“We will allocate about 60 percent of the investment to upgrading existing facilities and expanding production capacity,” Jang told reporters after the plant's inauguration ceremony. “About 20 percent will go toward new businesses, including AI, as well as ventures and startups.”

Hyundai Motor plans to introduce 20 internal combustion engine vehicle variants and six electric and hybrid variants in India by 2030.

Hyundai Motor CEO Jose Munoz said the company aims for environmentally friendly vehicles, including electric, hybrid and hydrogen fuel-cell models, to account for about 50 percent of its sales by 2030.

With the new Pune plant, Hyundai Motor operates three production facilities in India, with a combined annual capacity of nearly 1 million vehicles.

Hyundai Motor and its affiliate Kia sold a combined 852,164 vehicles in India last year, capturing 18.7 percent of the passenger vehicle market and ranking second behind Maruti Suzuki India. 

Yonhap