Hyundai Motor Company is set to establish India as its largest overseas production base, marking its 30th anniversary in the country. Following the expansion of its facilities in Chennai, the company aims to increase its annual production capacity to 1.4 million vehicles, positioning India as a key hub for global production and exports.
On October 14, Hyundai held a ceremony to inaugurate its new plant in Talegaon, Maharashtra, in central India.
The Pune facility is a former General Motors plant that Hyundai acquired in 2023 after it ceased operations in 2020 due to the COVID-19 pandemic. The company has transformed the previously threatened automotive plant into a smart manufacturing hub.
Chung Eui-sun, Chairman of Hyundai Motor Group, stated in his welcoming remarks, "Since launching our first model, the Santro, India has become a crucial pillar in Hyundai's global growth. The inauguration of the Pune plant marks the beginning of a new chapter for Hyundai in India."
Hyundai first entered the Indian market in 1998, a previously untapped region, and has since grown to sell around 600,000 vehicles annually. Its first production site in Chennai not only serves the domestic market but also exports approximately 180,000 vehicles to the Middle East, Latin America, and Africa.
The Pune plant is Hyundai's third production facility in India, following the Chennai plants 1 and 2, and will play a strategic role in the company's global operations. Combined with the Chennai plant's capacity of 824,000 vehicles, the total production capacity in India will reach 994,000 vehicles. Including Kia's Anantapur plant, Hyundai Motor Group's total annual production capacity in India will be 1.425 million vehicles. After completing the first phase of expansion at the Pune plant by 2028, the production capacity will increase to 1.5 million vehicles (including Kia).
This surpasses production capabilities in the United States, highlighting India's significance as a core pillar for Hyundai Motor Group. Currently, the group has a production capacity of 1 million vehicles in the U.S., with Hyundai's Alabama plant at 360,000 vehicles, Kia's Georgia plant at 340,000, and the Hyundai Motor Group Metaplant America (HMGMA) at 300,000. Even with planned expansions at HMGMA by 2028, the annual capacity will only reach 1.2 million vehicles.
Hyundai has high expectations for the Pune plant in terms of production flexibility. The facility will focus on producing the all-new Venue (second generation) SUV, catering to domestic sales and exports to over 30 countries, including Mexico, Chile, South Africa, and Saudi Arabia.
With the production burden eased at the Chennai plant, the company is accelerating its transition to electric vehicles (EVs). The Indian government aims to increase the share of EVs in new car sales to 30% by 2030, implementing various support measures to prepare for the growing local demand for electric vehicles.
* This article has been translated by AI.
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