Investment of 20.7 trillion won by 2032… Expanding R&D and localization of parts The United States responds to North American demand, India exports to emerging countries... Diversification of global production network
Hyundai Motor Company (005380) is accelerating the reorganization of its global production base by pursuing investments worth 20 trillion won in India. In the United States, we are responding to North American demand and tariff burden by expanding local production, and in India, we are expanding the role of regional production bases by simultaneously expanding production capacity and expanding exports to emerging countries.
Hyundai Motor Group will invest $15.5 billion (approximately 20.7 trillion won) in India from 2026 to 2032. After securing the Pune plant, which General Motors (GM) withdrew from, as a new production base, the company plans to invest funds in research and development (R&D) and localization of the parts supply chain to grow India into a major production and export base.
#### Pune, where GM withdrew, becomes a production base for Hyundai Motors... 320,000 units in 2030
Hyundai Motor Company held a completion ceremony for its new Pune plant in Talegaon, Maharashtra, India, on the 14th. GM acquired the plant, which ceased operation in 2020, in 2023 and rebuilt it at a cost of approximately 1 trillion won. It is the third local production base following the existing Chennai Plants 1 and 2.
The Pune plant's annual production capacity will expand from the current 170,000 units to 250,000 units in 2028 and 320,000 units in 2030. Including the Chennai plant's annual production capacity of 824,000 units, Hyundai Motor India's production capacity will reach approximately 1.14 million units in 2030, and Hyundai Motor Group's India production capacity, including Kia's Anantapur plant, will increase to approximately 1.57 million units.
In Pune, the company is producing the 'All New Venue', a compact sports utility vehicle (SUV), and is expanding its facilities to be able to produce a variety of vehicle models, including hybrid vehicles, in the future. The Chennai plant will strengthen production of electric vehicles along with existing internal combustion engine vehicles, dividing roles between the two plants.
The proportion of local parts procurement will also be increased. Hyundai Motor Company plans to increase the localization rate of parts in India from the current 83% to 92%, and will also focus investments on reducing dependence on imported parts and strengthening the local supply chain.
#### Going beyond domestic competition to expanding exports... Expansion of role as India production base
Along with expanding production capacity, the task that Hyundai Motors must solve is recovering local market share. It maintained second place in the Indian passenger car market after Maruti Suzuki for a long time, but recently fell to fourth place due to the growth of Mahindra and Tata Motors.
According to the Automobile Dealers Association of India (FADA), Hyundai's passenger car retail sales share in September was 11.75%, behind Maruti Suzuki (39.59%), Mahindra (13.42%), and Tata Motors (13.40%). While local companies are strengthening their SUV product lines and increasing sales, Hyundai Motor Company is also expanding the launch of new models, and domestic wholesale sales in September were 57,166 units, up 10.9% from the same month last year.
Hyundai Motor Company President Jose Muñoz met with local media at the completion ceremony of the Pune plant and said that he expects the company to return to second place in the Indian passenger car market by 2028-2029. Hyundai Motor Company plans to compete with local companies by introducing 26 products, including new cars and partially modified models, by 2030.
Indian production facilities are also increasing their share of overseas exports. The all-new Venue produced at the Pune plant will be supplied to over 30 countries, including Mexico, Chile, South Africa, and Saudi Arabia, and Hyundai Motor Company plans to increase the share of exports from its Indian subsidiary, currently about 24%, to 30% by 2030.
There are also differences in the roles played by the United States and India in the global production chain. Hyundai Motor Group is reducing the burden of tariffs and responding to demand in major markets by expanding local production in North America, including at the Meta Plant in Georgia, USA. India supplies vehicles to the growing domestic market while also exporting them to emerging countries such as the Middle East, Central and South America, and Africa. As production capacity increases with the expansion of the Pune plant, India's role as an export base is expected to further increase.
Hyundai Motor Group Chairman Chung Eui-sun also emphasized India as a strategic base for future growth and expansion into emerging markets. Chairman Chung said, "India is a strategic country that will drive Hyundai Motor Group's future growth and expansion into emerging markets," and added, "We will actively respond to the continued growth of the Indian automobile market through stable production and expand exports to emerging countries."
