Telangana Courts Hyundai for New Car Plant and ₹8,528 Cr R&D Hub

Following Hyundai Motor Group's recent announcement of a $15.5 billion investment in India spanning 2026 to 2032, Telangana's Chief Minister A Revanth Reddy has actively encouraged the automaker to establish a car manufacturing facility in Hyderabad. The state's leadership is offering comprehensive incentives and logistical support to attract this major industrial player.

Chief Minister Reddy emphasized Telangana's strategic advantages, pointing out its central location within India and Hyderabad's reputation as a cosmopolitan and secure city with high living standards. These factors, he noted, make the region an ideal base for manufacturing operations.

In addition to promoting new plant development, the Telangana government is committed to expediting the establishment of the Hyundai Motor India Engineering (HMIE) integrated global research and development centre. This R&D hub, planned at the National Investment and Manufacturing Zone (NIMZ) in Zaheerabad, represents a significant investment of ₹8,528 crore and is expected to generate approximately 4,276 jobs. The project will unfold in phases over 678 acres, indicating a large-scale and long-term commitment.

The substantial group investment will be channeled through various Hyundai entities including Hyundai Motor India and Kia India. The seven-year plan includes expanding manufacturing capacity, building advanced research infrastructure, nurturing local suppliers to boost parts localization, and exploring future automotive technologies. This comprehensive approach aims to cultivate a thriving automotive ecosystem in India.

Currently, Hyundai Motor India operates manufacturing plants in Chennai and Pune, while Kia India has a manufacturing facility in Anantapur, Andhra Pradesh. The proposed Telangana expansion would complement these existing operations and strengthen the group's footprint in the region.

A delegation from HMIE, led by Managing Director Changyeon Cho, recently met with Chief Minister Reddy at the Bodhi Pavilion to discuss progress and opportunities. During the meeting, the CM highlighted Telangana's dedicated mobility clusters and robust transport infrastructure, including road, rail, and air connectivity. He also mentioned forthcoming plans to enhance high-speed links to ports, which are expected to facilitate efficient supply chains.

The state is also preparing for accelerated industrial growth under spatial policies like the Peri-Urban Region (PURE) framework, designed to support manufacturing expansion and urban development simultaneously.

The HMIE team informed the Chief Minister that the Zaheerabad facility is on track to break ground within the next few months. HMIE has maintained an R&D presence in Hyderabad for two decades, with its Hitec City centre playing a vital role in advanced vehicle engineering. The new R&D and mega test centre will further bolster Hyundai's ability to test, validate, and refine vehicle technologies.

This initiative follows engagements at the World Economic Forum 2024, where Reddy led discussions with Hyundai officials to promote investment in Telangana. The state's cabinet sub-committee on industrial and investment promotion formally approved the R&D project in June 2025, signaling strong political backing.

Chief Minister Reddy also outlined plans for Bharat Future City, a large satellite urban development envisioned to support industrial and residential growth. He invited Hyundai leadership to participate in the upcoming Invest Telangana Global Summit 2026, aiming to showcase the state's investment climate.

Changyeon Cho expressed support for Telangana's ambitions, noting that Hyundai's goal to enhance Hyderabad as a global technology and engineering hub aligns with the Telangana Rising 2047 vision. Cho affirmed the company’s commitment to contribute to the region's sustained economic development.

This collaboration between Telangana and Hyundai highlights the growing interest in India’s automotive sector as companies seek to expand manufacturing and R&D capabilities domestically. It also reflects broader trends where regional governments compete to attract large-scale industrial investments that bring jobs, infrastructure improvements, and technological advancement.