In a tough market where Detroit’s auto giants folded, a new wave of foreign automakers is doubling down. Spurred by a domestic automobile boom and pressure from homegrown rivals, these manufacturers are committing tens of billions of dollars to build localized supply chains, establish global R&D hubs, and position India as an export powerhouse.
At least three global automakers — Stellantis NV, Hyundai Motor Group and Suzuki Motor Corp — have announced mega investment commitments in India in recent months, gunning for a bigger share of the world’s third-largest car market. Dutch carmaker Stellantis was the latest to commit an additional ₹4,000 crore over the next three years. Earlier, Suzuki outlined a ₹77,500 crore investment plan in August and Hyundai committed this week about ₹1.48 trillion to India over the next five to seven years.
The aggressive investment push is also coming as several of these carmakers have lost market share to homegrown rivals over the past five years.
Hyundai’s share of India’s passenger vehicle retail market fell to 12.29% in FY26 from 17.36% in FY21, while Honda’s declined to 1.29% from 2.99% and Renault’s to 0.83% from 3.15%, according to dealership data.
In contrast, Tata Motors’ share rose to 13.04% from 7.87% and Mahindra & Mahindra’s to 13.42% from 5.35% over the same period. Maruti Suzuki, despite remaining the market leader, saw its share decline to 39.71% from 48.73%.
Stellantis
Stellantis accounted for just 0.25% of India’s passenger vehicle retail market in FY26. There is no directly comparable FY21 figure because Stellantis was formed in 2021 through the merger of Fiat Chrysler and PSA as its Indian brands operated under their predecessor companies then.
For Stellantis, the investment will take its cumulative India investment to ₹15,000 crore and fund the development and rollout of 12 products over the next three years, including seven new nameplates and five refreshed models. The first of these products will be introduced in the second quarter of 2027. The company will also increase localization and manufacturing engineering as it seeks to make India a larger base for product development and exports.
“India is the key market to grow where we want to remain invested in and the second objective is to use the capabilities as a base for Asia Pacific and for the world,” Shailesh Hazela, chief executive officer and managing director, Stellantis India, told Mint.
The investment commitments come alongside aggressive product cycles. Stellantis plans seven new nameplates by 2029, Maruti Suzuki is preparing seven new SUVs by 2031, while Hyundai has outlined a 26 product offensive through 2030.
Although there is no comparable fresh investment commitment, French carmaker Renault and Japanese automaker Honda are also renewing their India focus through new product launches and by identifying the country as an important priority market.
As per Hazela, Stellantis will introduce products across internal combustion, hybrid and electric powertrains, while its India-built vehicles will be exported to more than 50 countries. Its Indian engineering centre and supplier base will play a larger role in developing these products.
“Our aspiration is … that we want to move from 48 months to 24 months as a product development,” Hazela said, referring to Stellantis’ target of halving development timelines by combining Indian engineering capabilities with global resources and partnerships.
The company is also expanding its use of Indian partnerships. Stellantis recently agreed to deepen its partnership with Tata Motors Passenger Vehicles Ltd beyond manufacturing into engineering, supply chain and purchasing. The two companies are working on a vehicle using a Tata Motors platform, with the Jeep model expected to be developed and manufactured in India for export markets.
Hyundai
Hyundai’s commitment is significantly larger and spans the wider automotive ecosystem. Hyundai Motor Group has pledged $15.5 billion, or about ₹1.48 trillion, between 2026 and 2032, covering manufacturing expansion at Hyundai Motor India and Kia India, R&D infrastructure, local supplier development and future technologies. About $700 million of the investment is earmarked for its Indian R&D centre and vehicle testing track. The group also plans investments in areas such as EV charging, automotive finance, vehicle recycling, startups and other mobility services.
“India remains one of Hyundai Motor Group’s most important and strategic markets globally. The past 30 years have been defined by our commitment to India. This investment reaffirms our commitment to India for the next 30 years and beyond,” Euisun Chung, executive chair, Hyundai Motor Group, said in a statement on Tuesday.
Hyundai’s investment will also expand manufacturing capacity and strengthen India’s role as an export hub. The group currently has more than 1.4 million units of annual production capacity across Hyundai’s plants in Chennai and Pune, and Kia’s plant in Anantapur, with further expansion planned. The company has also crossed four million cumulative passenger vehicle exports from India.
Suzuki, meanwhile, is betting on scale. India’s largest passenger-vehicle maker, Maruti Suzuki India Ltd plans to invest ₹77,500 crore through FY31, raising its capex plan as it expands annual production capacity towards 4 million vehicles. The spending will cover capacity expansion, new models, R&D, logistics and cleaner manufacturing, with the company also planning seven new SUVs.
The investments come at a time when India’s passenger vehicle market is expanding at a pace that is drawing fresh attention from global automakers. Passenger vehicle sales reached a record 4.64 million units in FY26, up 7.9% from the previous year, according to the Society of Indian Automobile Manufacturers.
The momentum has continued into FY27, with Siam data showing that passenger vehicle sales grew 28% to 2.63 million units between April and September.