Hyundai Motor Group will invest $15.5 billion in India through 2032 and nearly double annual production capacity at its Talegaon facility in Maharashtra, as the automaker seeks to regain market share through new models, localisation and expanded exports.
The investment plan was outlined at a media briefing in Pune following the inauguration of Hyundai’s Talegaon manufacturing facility. The company said the Pune plant’s annual capacity will rise from 170,000 vehicles to 320,000 by 2030, an increase of nearly 88 per cent. Combined with Hyundai’s operations in Chennai, Hyundai Motor India’s total manufacturing capacity will approach 1.14 million vehicles annually.
Hyundai Motor Group said the wider investment programme covers Hyundai Motor India, Kia and other group affiliates. Around 20 per cent of the total investment, or approximately $3.1 billion, will be allocated to new technologies, including artificial intelligence and startups. A similar amount will be directed towards research and development.
The company has already invested ₹7,000 crore in Maharashtra and plans to add another ₹4,000 crore by 2030, taking its total commitment to the Pune facility to ₹11,000 crore. “We will invest INR 11,000 crore in phases at this facility. Beyond expanding manufacturing capacity, the facility will drive industrial development, innovation and employment generation in the region,” Hyundai Motor India managing director Tarun Garg said, according to The Hindu BusinessLine.
The expansion is being supported by 55 supplier partners, which have collectively invested nearly ₹4,600 crore in Maharashtra. Including Tier-II vendors, the supplier ecosystem has created more than 18,000 jobs. Nearly half of the supplier base is located within a 50-km radius of the plant, linking the facility’s growth to a concentrated manufacturing and logistics network around Talegaon.
Hyundai plans to launch 26 new models alongside the capacity expansion. Garg said the new products are intended to help the company recover market share amid competition from Mahindra & Mahindra and Tata Motors. The Pune plant will exclusively manufacture the next-generation Venue, which will be exported to more than 35 countries.
The factory is equipped to produce internal-combustion and hybrid vehicles. Its engine shop has an annual production capacity of 150,000 engines. Hyundai also said the facility uses artificial intelligence-based quality inspection, predictive maintenance and digital manufacturing systems.
The company aims to increase localisation from 83 per cent to 92 per cent, strengthening the role of Maharashtra-based suppliers in its production network. “From 83 per cent to 92 per cent is what we are aiming for. And Maharashtra is going to play a very important role,” a senior company executive said.
Hyundai also plans to increase exports to 30 per cent of production, compared with 24 per cent currently. The company said it would continue its electric-vehicle expansion with four launches by 2029 and introduce hybrid models as part of its broader product strategy.
The investment announcement followed a meeting between Hyundai Motor Group executive chair Euisun Chung and Prime Minister Narendra Modi in New Delhi a day earlier. The Talegaon expansion will now proceed in phases, with capacity, model launches, supplier investment and localisation forming the principal components of the company’s India plan through 2030.
