(Pune [India] = Yonhap News) Reporter Jang Ha-na = As Hyundai Motor Group secures a new production base in India, the world's third largest automobile market, and plans to invest 21 trillion won by 2032, it is expected to open new opportunities for domestic parts companies as it expands its local business.
According to Hyundai Motor Group on the 14th, there are a total of 120 domestic parts companies that have entered India along with Hyundai Motors and Kia.
The number of partners that entered the local market with Hyundai Motor Group was only 68 in 2011 when only Hyundai Motor Company's Chennai plant was in operation, but the number increased to 84 in 2019 with the construction of Kia's Anantapur plant, and to 120 with the completion of the Pune plant.
The Indian sales of partner companies that entered the Indian market also increased significantly.
The Indian sales of Sungwoo Hitech, which produces car body parts, surged 54.6% from KRW 345.8 billion in 2019 to KRW 534.6 billion in 2025. Sungwoo Hitech currently operates parts factories in three locations, including Chennai, Anantapur, and Pune, along with Hyundai Motors and Kia.
Seoyon E-Hwa, which supplies door trims, etc., also saw its sales in India increase by 97% from KRW 303 billion to KRW 592.5 billion during the same period. HL Mando, which produces steering and braking parts, had sales in India last year of KRW 1.081 trillion, an increase of more than 90% compared to 2019 (KRW 529.4 billion).
With the full-scale operation of Hyundai Motor Company's Pune plant, which held a completion ceremony on this day, sales of partner companies that entered the market are expected to increase further.
The annual production capacity of Hyundai Motor Company's Pune plant is 170,000 units, and Hyundai Motor Company plans to expand the production capacity of the Pune plant to 250,000 units in 2028, two years later, and 320,000 units in 2030, four years later.
An industry official said, "Hyundai Motor Group's expansion of its business in India is an opportunity for its partners to expand the economic effect in the new market of India."
If the 21 trillion won investment in India announced by Hyundai Motor Group in conjunction with the completion ceremony of its new plant in Pune begins in earnest, the economic effect enjoyed by the domestic automobile ecosystem is expected to grow further.
Hyundai Motor Group Chairman Chung Eui-sun met with Indian Prime Minister Narendra Modi the day before and said, "India is a strategic country that will drive Hyundai Motor Group's future growth and expansion into emerging markets," and added, "We are planning an investment of about $15.5 billion (about 20.8 trillion won) over the next seven years starting this year."
The key point is that investment is made across the entire automotive industry ecosystem, including research and development (R&D), parts supply chain development, and new businesses, rather than simply expanding production capacity.
Meanwhile, exports of automobile parts to India amounted to $841.09 million last year, ranking 5th among major items traded with India.
