Hyundai Motor Establishes a "1 Million-Vehicle Annual Production System" in India 30 Years After Entry

Pune Plant Opens, Establishing Smart Manufacturing Hub
Subcompact SUV 'Venue' Begins Production, to Be Exported to More Than 30 Countries
Hyundai Motor Group to Establish Annual Production System for 1.5 Million Vehicles by 2028

Thirty years after entering India, Hyundai Motor Company has secured a new local production base and is set to expand its global reach from India. Since establishing its Indian subsidiary in May 1996, Hyundai Motor has built on the trust it has earned locally and is positioning India not merely as a consumer market, but as a key pillar of future growth.

Hyundai Motor's Chennai plant in India. Hyundai Motor

On the 14th (local time), Hyundai Motor held a completion ceremony for its new Pune plant in Talegaon, Maharashtra, in west-central India. The facility was acquired by Hyundai Motor in 2023 from General Motors (GM); the former GM plant had halted operations in 2020, in the wake of the COVID-19 pandemic. Hyundai Motor has rebuilt the factory, which had faced closure, as a smart manufacturing hub. The site covers 1.2 square kilometers (about 360,000 pyeong), equivalent to approximately 166 soccer fields.

Attendees at the ceremony included Maharashtra Chief Minister Devendra Fadnavis, federal lawmaker Shrirang Appa Barne, and Lee Seong-ho, South Korea's ambassador to India, along with other government and political figures from both countries. Hyundai Motor Group Executive Chair Euisun Chung, Vice Chair Jaehoon Chang, Hyundai Motor President and CEO Jose Muñoz, and Tarun Garg, CEO of Hyundai Motor India Limited (HMIL), were among the company's senior executives in attendance.

In his welcoming remarks, Chung said, "Since Hyundai Motor first entered India 30 years ago, we have worked to earn the trust of local customers. Since launching our first locally produced model, the Santro, India has become a key pillar in Hyundai Motor's global growth." He added, "The completion ceremony for the Pune plant will mark the beginning of a new chapter for Hyundai Motor in India."

Over the past 30 years of doing business in India, Hyundai Motor has grown into a leading automotive brand, selling 600,000 vehicles annually. Its Chennai plant, its first production base, exports 180,000 vehicles to the Middle East, Latin America, Africa, and other regions, in addition to serving the Indian domestic market. The new Pune plant will serve as a strategic hub for Hyundai Motor's global vehicle manufacturing business. It is the company's third production base in India, following its Chennai Plants 1 and 2, and includes not only an vehicle assembly plant but also an engine plant, a test track, and employee training facilities.

The plant has an annual production capacity of 170,000 vehicles. With the first phase of expansion, capacity will rise to 250,000 in two years, and with the second phase, to 320,000 by 2030. Hyundai Motor plans to establish a flexible, multi-model production system, with hybrid electric vehicles (HEVs) also to be added in the future.

The first mass-produced model will be the all-new Venue (second-generation Venue), a subcompact sport utility vehicle (SUV). In addition to sales in India, the model will be exported to more than 30 countries worldwide, including Mexico, Chile, South Africa, and Saudi Arabia.

The plant also incorporates extensive smart manufacturing technology. An artificial intelligence (AI)-based crack detection system automatically identifies fine cracks and crevices to inspect panel quality. More than 200 industrial robots handle welding in body-work processes that are particularly demanding for workers. New employees will receive augmented reality (AR)-based training to improve their skills before beginning work on the production line.

With the new Pune plant in operation, Hyundai Motor will have a local production capacity of 1 million vehicles. This combines the 824,000-vehicle capacity of Chennai Plants 1 and 2 with the Pune plant's capacity of 170,000. Hyundai Motor India plans to raise the export share of its output to 30% by 2030.

Including Kia's Anantapur plant, which has an annual production capacity of 431,000 vehicles, Hyundai Motor Group's total production capacity in India will reach 1.425 million vehicles annually as of this year. After completing the first phase of expansion at the Pune plant in 2028, Hyundai Motor Group will establish an annual production system for 1.5 million vehicles in India.

The new plant is also expected to increase flexibility in local production. With the Pune plant taking sole responsibility for producing the Venue, a locally targeted model, the existing Chennai plant will accelerate its transition to electric vehicles (EVs). Hyundai Motor aims to become a leading player in local electrification as well. In addition to the IONIQ 5 and Creta Electric, which are currently on sale, the company will launch a new small electric SUV tailored to the Indian vehicle segment in the first quarter of next year (January-March).

Alongside the new plant's completion ceremony, Hyundai Motor announced the group's mid- to long-term investment plan for India. The investment will cover not only expanded production capacity but also the broader automotive industry ecosystem, including research and development (R&D), development of parts supply chains, and new businesses. To this end, the group will invest $15.5 billion (approximately KRW 20.7 trillion) over seven years, from this year through 2032.

Hyundai Motor plans to develop skilled talent through its India Technical Center and maintain its technological edge over local brands. For parts supply chains, it will increase the localization rate of components through joint ventures with local suppliers. New models will be equipped with Level 2 autonomous driving technology following localization.

The company will pursue investments in local startups and new businesses. One of the new businesses under consideration is electric three-wheelers. Hyundai Motor is working with local two-wheeler maker TVS to develop an electric three-wheeler prototype, with commercialization targeted for the end of next year.

Hyundai Motor is also pursuing the establishment of an investment company specializing in India, jointly with its affiliates. The aim is to execute mid- to long-term investments more efficiently. The new investment company is expected to serve as a platform supporting investment in R&D, future technologies, and the broader industrial ecosystem in India.

This content was produced with the assistance of AI translation services.