Hyundai Motor Group eyes hydrogen expansion in India, from buses to locomotives

Solar-based hydrogen production

Expansion beyond mobility into industry and energy

Local hydrogen R&D hub to be established

60% of $15.5 billion investment earmarked for production, 20% for AI and new businesses

New investment vehicle 'HMG India' to be set up

50% eco-friendly vehicle target by 2030

India export share to rise from 24% to 30%

Attendees pose for a photo at the inauguration ceremony of Hyundai Motor's new Pune factory in Talegaon, Maharashtra, India, on Wednesday (local time). From left: Seo Gang-hyun, president of Hyundai Motor Group's planning and coordination division; Jang Jae-hoon, vice chairman of Hyundai Motor Group; Euisun Chung, chairman of Hyundai Motor Group; Uday Samant, Maharashtra state minister of industries; Lee Sung-ho, South Korea's ambassador to India; Sunetra Pawar, deputy chief minister of Maharashtra; Devendra Fadnavis, chief minister of Maharashtra; Jose Munoz, president and CEO of Hyundai Motor; and Tarun Garg, CEO of Hyundai Motor India. [Hyundai Motor/Kia]

Hyundai Motor Group is pushing to expand its hydrogen business in India beyond passenger cars and commercial vehicles such as buses and trucks to include locomotives. The group plans to first apply hydrogen produced from local renewable energy sources, including solar power, to mobility, then gradually extend into the industrial and energy sectors.

Jang Jae-hoon, vice chairman of Hyundai Motor Group, outlined the hydrogen strategy at a press briefing following the inauguration of Hyundai Motor's new Pune factory in Talegaon, Maharashtra, on Wednesday (local time).

"We plan to first apply hydrogen production infrastructure using renewable energy such as solar power to the mobility sector, then expand into industry and energy," Jang said. "We will extend the use of hydrogen beyond passenger cars to commercial vehicles including buses and trucks, and to locomotives as well." While Hyundai Motor had previously focused on hydrogen technology research and ecosystem development in India, the company has now laid out specific transportation and industrial sectors where hydrogen will be deployed.

Jang said the group intends to work with both the central and state governments to advance the initiative. He cited India's strong interest in energy self-sufficiency and the government's clear commitment to investment as positive factors for expanding the hydrogen business.

The Indian government has been nurturing the hydrogen industry as a future growth engine. Through its National Green Hydrogen Mission, launched in 2023, India aims to build annual green hydrogen production capacity of 5 million tons by 2030. The government is also pursuing policies to expand hydrogen use across sectors including transportation, steel and energy, alongside production and related equipment manufacturing.

An all-new Venue compact SUV produced at Hyundai Motor's new Pune factory in India undergoes a water-leak inspection. [Hyundai Motor]

Hyundai Motor has already been laying the groundwork for its hydrogen business in India. Its Indian subsidiary is working with the Indian Institute of Technology (IIT) Madras and the Tamil Nadu state government to establish the Hyundai HTWO Innovation Center, aimed at developing core hydrogen technologies and building a local ecosystem. The company plans to invest 1 billion rupees (100 crore rupees) in green hydrogen technology development and related infrastructure.

The center is being developed as a hub to support research into core hydrogen technologies — including electrolyzers and fuel cells — as well as the demonstration of hydrogen production, storage and utilization technologies. It will operate under HTWO, Hyundai Motor Group's hydrogen business brand, to support local technology development and the growth of related industries in India.

At the briefing, Jang also disclosed how the group plans to deploy its $15.5 billion investment commitment in India. He said roughly 60 percent of the funds, to be spent from this year through 2032, will go toward expanding and upgrading production facilities, while about 20 percent will be directed to new business areas including AI and venture startups.

Breaking down the roughly 21 trillion won ($15.7 billion) total, approximately 12.6 trillion won would go to production facilities and about 4.2 trillion won to AI and new businesses. The remainder is to be used for strengthening research and development capabilities, among other purposes.

On the production side, Jang said the group will upgrade aging equipment while simultaneously expanding capacity. Hyundai Motor plans to increase the annual production capacity of the newly inaugurated Pune factory from the current 170,000 units to 320,000 units by 2030.

Investment in non-automotive businesses will also grow. Jang said the group plans to establish a dedicated investment entity called HMG India to pursue group-level investments spanning energy, AI and other areas beyond finished vehicles and mobility. The new entity will also handle government relations and public affairs in the local market.

A rendering of the Hyundai HTWO Innovation Center, being developed by Hyundai Motor India in partnership with IIT Madras and the Tamil Nadu state government. The facility, to be built near Chennai, will conduct research and development on core green hydrogen technologies including electrolyzers and hydrogen fuel cells. [IIT Madras]

Seo Gang-hyun, president of Hyundai Motor Group's planning and coordination division, said the group will pursue technology investment and open innovation by leveraging India's competitive IT industry. He also raised the possibility of investment in the energy and power sectors.

Seo added that affiliate companies could follow with additional investment. "As Hyundai Motor and Kia expand their production capacity, affiliates such as Hyundai Transys and Hyundai Glovis will also increase their investment," he said. "Group-level investment will also go toward strengthening local R&D and test-driving capabilities, as well as developing technologies tailored to local conditions."

The group's eco-friendly vehicle strategy, centered on electric and hybrid models, also took shape. Tarun Garg, CEO of Hyundai Motor India, said the company will have four electric vehicle models by 2029 and will invest in charging infrastructure. "We have already localized battery packs and power electronics components, and we are also reviewing the localization of battery cells," he said.

Industrial robots perform body welding at Hyundai Motor's new Pune factory in Talegaon, Maharashtra, India. The factory has deployed more than 200 industrial robots in its body assembly process. [Hyundai Motor]

Hyundai Motor currently sells the Ioniq 5 and Creta Electric in India and plans to add a locally tailored compact electric SUV in the first quarter of next year.

The company is also working to raise its local parts procurement rate. "Our goal is to increase the localization rate from the current 83 percent to 92 percent, and Maharashtra will play an important role in that," Garg said. He added that the company aims to recover market share by launching 26 new models and to make 50 percent of its product portfolio sustainable models by 2030.

Hyundai Motor India reaffirmed its commitment to developing India as a global export hub. The subsidiary currently exports about 24 percent of its local output and aims to raise that share to 30 percent by 2030.

kwater@heraldcorp.com