Anand Mahindra reveals how India can cause trouble to China’s auto market, but only if it focuses on one key thing

Industrialist Anand Mahindra on Friday reacted to a post on X (formerly Twitter) that said Hyundai India wants to beat Tata and Mahindra at their own game by massively investing in a homegrown R&D facility to churn out products faster and at a lower cost.

Mahindra said, no doubt this elevates the competitive intensity, but Hyundai’s decision to significantly ramp up R&D in India is a huge positive for the entire automotive ecosystem.

It will help attract, train, and retain top engineering talent locally and make India a magnet for global high-tech talent, Mahindra explained, adding that this concentration of engineering excellence will fuel innovation and help India emerge "as a true rival to the Chinese auto industry."


In the end, India wins, he stated.

Hyundai's India strategy

Hyundai Motor Tuesday announced plans to invest $5 billion (₹45,000 crore) in India by 2030, outlining its most aggressive growth roadmap yet for the market. The funds would go toward expanding capacity, localising R&D, and rolling out new products, as the South Korean automaker deepens its presence in what it calls a “core pillar” of its global strategy.

This is the first time that Hyundai — the maker of Creta and Venue SUVs — has given a 4–5 year forward guidance on capital expenditure in India. The company has so far invested about $6 billion in its Indian operations since entering the market in 1996.

“India is not part of the strategy — India is the strategy,” Hyundai’s Global President and CEO José Muñoz said at a media roundtable in Mumbai, underscoring the market’s growing strategic importance for the South Korean automaker. “By being strong here, we are a strong OEM globally.”

About 60% of the proposed investments would go into product and R&D, with the remaining 40% earmarked for capacity expansion and upgradation. The company would also introduce its luxury brand Genesis and Hyundai Capital, its captive finance arm, in India.

While explaining India’s centrality in helping the Korean automaker achieve its global ambitions, Muñoz cited India’s engineering talent, competitive cost base, and growing domestic demand as draw cards that justify the proposed bulge-bracket investments.

Netizens react

Meanwhile, reactions to Mahindra's post have been overwhelmingly positive. Netizens noted that boosting local research and development not only strengthens India’s engineering capabilities but also positions the nation as a global centre for high-tech talent and automotive excellence. Several commentators emphasised that this move makes the industry more competitive and signals a shift from India being merely a manufacturing base to becoming a global innovation lab.