Hyundai Motor Group's investment in India is emerging as a new growth driver for the domestic automotive parts industry. As major suppliers operating locally see steady revenue increases, the expansion of production capacity and localization of parts is expected to create more opportunities for additional orders and business growth.
According to the automotive industry on October 15, around 120 domestic parts suppliers have entered the Indian market alongside Hyundai and Kia. This number has grown from 68 suppliers in 2011, when only the Hyundai Chennai plant was operational, to 84 suppliers in 2019 with the establishment of the Kia Anantapur plant, and now further expanded with the completion of the Pune plant.
As the production base for finished vehicles expands, the parts supply chain is also growing locally. Since automotive parts must be supplied in accordance with the production schedules of finished vehicles, securing local production bases is crucial. Hyundai's expansion of production capacity in India presents an opportunity for parts suppliers to secure new supply volumes and broaden their local operations.
Indeed, major parts suppliers are reporting increases in their revenues from India. For instance, Seongwoo Hi-Tech, which produces body parts, saw its Indian revenue rise from 345.8 billion won in 2019 to 534.6 billion won in 2025, a 54.6% increase. Seongwoo Hi-Tech operates parts factories in Chennai, Anantapur, and Pune alongside Hyundai and Kia. With the Pune plant now fully operational, local sales are expected to increase further.
HL Mando, which produces steering and braking components, also experienced significant growth, with its Indian revenue climbing from 529.4 billion won to over 1 trillion won, an increase of more than 90%. Seoyon E-Hwa, which supplies door trims, saw its revenue nearly double from 300.3 billion won to 592.5 billion won. The expansion of local production by finished vehicle manufacturers has broadened the growth base for major parts suppliers in India.
The importance of the Indian market is also evident in parts exports. Last year, South Korea's automotive parts exports to India reached $841.09 million, ranking fifth among major export items in trade with India. The structure of local production and exports supports the Indian operations of the domestic automotive parts industry.
As Hyundai Group's recently announced investment plans in India take shape, the economic benefits for the domestic parts industry are expected to expand. The group plans to invest $15.5 billion (approximately 20.7 trillion won) over the next seven years until 2032. This includes the expansion of production capacity for Hyundai and Kia, the development of local partners, and the increase of parts localization, which is anticipated to create new business opportunities for domestic parts suppliers in the process of building local supply chains in response to the growing demand for parts driven by expanded vehicle production.
* This article has been translated by AI.
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