Hyundai bets on $15.5 billion India investment, 26-model cycle to drive next phase of growth

Hyundai Motor India is stepping up its India strategy with a $15.5 billion investment commitment from its parent through 2032, higher manufacturing capacity and a 26-model product cycle, as the automaker looks to deepen its presence across SUVs, electric vehicles, CNG and hybrid powertrains.

The strategy is playing out as Hyundai looks to capture a larger share of India’s expanding SUV market. The company launched the Bayon, its second model in the mid-size SUV segment, at a starting price of ₹9.99 lakh (ex-showroom), adding another product alongside its long-running segment leader, the Creta. “India is central to Hyundai’s global future,” Hyundai Motor India managing director and CEO Tarun Garg said at the launch.

Garg said Hyundai’s “golden product cycle” of 26 new models remains on track, with the company looking to bring new products to India every year. The programme, announced in 2025, comprises 20 internal combustion engine models and six EVs, including new models, full model changes and product enhancements.

Hyundai Motor Group has committed $15.5 billion in investment in India by 2032. Garg said the investment would help India move beyond being primarily a manufacturing base and become a global centre for technology, engineering and product creation.

The company’s manufacturing capacity in India currently stands at 994,000 units a year and is expected to rise to 1.14 million units by 2030. Hyundai also plans to raise localisation from around 83% currently to 92% by 2032.

The company is also widening its SUV portfolio as the segment continues to outpace the broader passenger vehicle market. Garg said India’s SUV market has grown sharply, while CNG and EVs have also recorded strong growth. “The industry is moving very fast. SUVs are growing, CNG is growing, EVs are growing, and AI and software are increasingly shaping the ownership experience,” Garg said.

The Bayon is Hyundai’s latest response to that shift. Garg positioned the model not simply as another SUV, but as a move towards more intelligent vehicles. “Today, India is asking, can my SUV be as intelligent as me and we are answering with Bayon,” he said.

The Bayon is powered by a 1.5-litre four-cylinder MPi petrol engine producing 115 PS and 144 Nm of torque. It is offered with a six-speed manual transmission and Hyundai’s Intelligent Variable Transmission (IVT). Its biggest technology proposition is Hyundai Motor India’s first generative AI-powered voice assistant. The system combines Perplexity’s AI capabilities with SoundHound AI’s voice technology and is designed to handle natural-language interactions, including queries related to weather, travel, hotels, restaurants, shopping and sports.

The SUV gets Hyundai’s Connected Car Navigation Cockpit, accelerated by NVIDIA, along with dual 12.3-inch curved panoramic displays. It also comes with more than 70 Bluelink connected features and over-the-air software updates for up to 19 vehicle controllers.

The Bayon gets Level 2 advanced driver assistance systems, including Forward Collision Warning, Forward Collision-Avoidance Assist, Lane Keeping Assist, Lane Following Assist, Blind-Spot Collision Warning and Smart Cruise Control with Stop and Go. Six airbags are standard, while a 360-degree camera and Blind-Spot View Monitor are also available. “For 30 years, Hyundai’s intelligence has lived within our people. Today, that intelligence moves into the car as well,” Garg said.

Hyundai targets over 2.5 lakh units from Creta, Bayon

Speaking to reporters on the sidelines of the launch event, Garg said Hyundai is targeting more than 2.5 lakh units a year from the Creta and Bayon as it seeks to retain its leadership in the mid-size SUV segment. “Along with Creta and Bayon, we are looking at a volume of over 250,000 units per annum going forward. With this volume, very clearly, we can continue with our segment leadership in the mid-SUV segment. And 250,000 units is not a limit; it is a baseline; we will continue to grow,” he said.

The mid-size utility vehicle segment, covering models between 4 metres and 4.4 metres, sold around 9 lakh units in FY26, according to Society of Indian Automobile Manufacturers data. Hyundai sold close to 2 lakh Creta units annually in the segment over the last two financial years.

Garg said the size of the segment justified having more than one Hyundai model. “It depends on the size of the segment. If there is an opportunity, then why not?” he said. Creta sales declined more than 9% year-on-year to 89,727 units in the first six months of FY27, even as the broader segment grew more than 50%. Garg attributed part of the pressure to limited diesel supplies, saying the diesel Creta has a waiting period of more than a month.

Hyundai is keeping the Bayon focused on petrol and CNG, with no diesel or electric version planned at present. “We believe very strongly that based on our market research, this is a segment where the maximum sales are going to come from petrol,” Garg said.

The Bayon will be manufactured at Hyundai’s Chennai plant, where Garg said it would help improve capacity utilisation after Venue production moved to Pune. The model will also be exported to more than 50 countries across the Middle East, Africa, Central and South America and the Asia-Pacific region.

With the Bayon, Hyundai now has 10 models in India, including six SUVs, two sedans and two hatchbacks.