Hyundai Scales Up in India... Partner Suppliers' Sales "Soar"

Partner companies entering India alongside Hyundai Motor Group to reach 120
Auto parts exports to India reach $840 million

Hyundai Motor Group's 21 trillion won investment to expand its business in India is expected to create new business opportunities for South Korean auto parts companies.

Hyundai Motor Group said on October 14 that Euisun Chung, Executive Chair of Hyundai Motor Group, met with Indian Prime Minister Narendra Modi at the prime minister's residence in New Delhi on October 13 local time and outlined plans to invest $15.5 billion (approximately 21 trillion won) over seven years, from 2026 through 2032.

“India is a strategic country that will drive Hyundai Motor Group's future growth and expansion in emerging markets,” Chung said. “With the Pune plant in operation, we have secured annual production capacity of 1.4 million vehicles. Through stable production, we will actively respond to continued growth in the Indian automotive market and expand exports to emerging markets.”

Automotive demand is growing rapidly in India, home to the world's largest population. The country has become the world's third-largest automotive market, following China and the United States. Passenger vehicle sales, which account for more than 80% of the overall market, are projected to rise by about 15%, from 4.57 million in 2025 to 5.25 million in 2026.

Hyundai Motor Group will invest in expanding production facilities, strengthening research and development (R&D) capabilities, enhancing the competitiveness of its local supply chain, and developing new technologies for the future. The investment is also expected to give partner companies opportunities to enter the Indian market.

About 120 South Korean auto parts suppliers have entered India alongside Hyundai Motor and Kia. The number of partner companies that entered the market alongside Hyundai Motor Group stood at just 68 in 2011, when only Hyundai Motor's Chennai plant was in operation. It rose to 84 in 2019 with the construction of Kia's Anantapur plant, and is expected to reach 120 with the completion of the Pune plant.

Indian sales of partner companies that entered the market have also risen significantly. Sungwoo Hitech, which produces body parts, operates parts plants in three locations in India—Chennai, Anantapur, and Pune—alongside Hyundai Motor and Kia. Its sales in India surged 54.6%, from 345.8 billion won in 2019 to 534.6 billion won in 2025. Sales are expected to increase substantially once the Pune plant is fully operational.

Seoyon E-Hwa, which supplies door trims and other products, also saw its sales in India rise 97% over the same period, from 300.3 billion won to 592.5 billion won. HL Mando, which produces steering and braking components, recorded sales of 1.0081 trillion won in India in 2025, up more than 90% from 529.4 billion won in 2019.

In addition, South Korea's auto parts exports to India reached $841.09 million in 2025, making auto parts the fifth-largest item in trade between South Korea and India.

“As Hyundai Motor Group's announced investment in India gathers momentum, the economic benefits for South Korea's automotive ecosystem will grow further,” an auto parts industry official said. “We need to create a virtuous cycle in which overseas investment by automakers leads to mutual growth with their domestic partners.”

This content was produced with the assistance of AI translation services.