Telangana has stepped up its bid to attract a Hyundai car manufacturing plant to the state, while work on the automaker’s proposed ₹8,528-crore research and development facility in Zaheerabad is moving towards groundbreaking in the coming months.
Chief Minister A Revanth Reddy made the pitch during a meeting with a Hyundai Motor India Engineering delegation led by managing director Changyeon Cho at the Bodhi Pavilion. Reddy told the Hyundai leadership that Telangana was ready to provide all possible support for manufacturing investment and to expedite the company’s ongoing project.
The proposed Hyundai Motor India Engineering integrated global research and development facility is planned at the National Investment and Manufacturing Zone in Zaheerabad. The project is spread across 678 acres and carries a total employment commitment of 4,276 jobs. The facility is expected to be developed in phases, with the company’s delegation informing the chief minister that it could be ready for groundbreaking in the next few months.
The investment forms part of Hyundai Motor Group’s wider plan to invest $15.5 billion in India between 2026 and 2032. The proposed seven-year investment programme covers manufacturing expansion, research and development infrastructure, local supplier development for parts localisation and future vehicle technology innovation. The investment will be made through Hyundai Motor India, Kia India and other group companies.
Reddy presented Hyderabad as a potential base for Hyundai’s manufacturing expansion, citing the city’s location, road, air and rail connectivity, mobility clusters and planned future links to ports. He also referred to the state’s Peri-Urban Region framework for manufacturing and its plans for industrial expansion around Hyderabad.
Hyundai Motor India currently has manufacturing facilities in Chennai and Pune, while Kia India operates a plant in Anantapur, Andhra Pradesh. The proposed Telangana facility would add to the group’s existing engineering presence in Hyderabad, which dates back two decades. Its Hitec City facility functions as a major research and development centre supporting advanced vehicle engineering.
The Zaheerabad project is intended to expand those capabilities through a research and development centre and mega test facility. It will be used to test, validate and improve engineering processes, according to the details shared during the meeting. The project’s scale also links the state’s industrial strategy to the creation of a wider automotive supply chain, including component localisation and future technology development.
The state government’s engagement with Hyundai began before the latest pitch. During the World Economic Forum in 2024, a Telangana delegation led by Reddy met Hyundai officials to seek investment in the state. In June 2025, a Telangana Cabinet sub-committee on industrial and investment promotion approved Hyundai’s proposal to establish the R&D centre.
Reddy also invited Hyundai’s leadership to the Invest Telangana Global Summit 2026 and outlined the government’s vision for a planned satellite city called Bharat Future City. Cho said Hyundai’s plan to strengthen Hyderabad as a global technology and advanced engineering hub complemented the Telangana Rising 2047 vision. The immediate next milestone for the Zaheerabad project is the expected groundbreaking in the coming months.
