Hyundai plans ₹4,000 crore investment in Maharashtra, aims to double Pune plant capacity by 2030
Hyundai Motor India plans to invest an additional ₹4,000 crore in Maharashtra by 2030, with the company aiming to nearly double the production capacity of its new Pune manufacturing plant to 3.2 lakh units annually in a phased manner, a senior executive said on Wednesday.
The facility, which has an annual production capacity of 1.7 lakh units, has already received an investment of ₹7,000 crore, Hyundai Motor India (HMI) CEO and Managing Director Tarun Garg told reporters on the sidelines of the plant's launch event.
The facility was officially inaugurated by Maharashtra Chief Minister Devendra Fadnavis, Deputy Chief Minister Sunetra Pawar, state Transport Minister Uday Samant and senior Hyundai Group executives.
The announcement comes a day after Hyundai Motor Group (HMG) unveiled a comprehensive investment strategy for India, committing $15.5 billion by 2032. The investment is aimed at positioning India as a key market for the group's future growth and expansion into emerging markets.
Garg said ₹4,000 crore of the group's planned $15.5 billion investment would be directed towards Maharashtra. He added that the company was looking beyond mobility as part of its investment strategy.
" ₹7,000 crore has already been invested in Maharashtra. This is a direct investment by Hyundai into Maharashtra," Garg said.
In addition to Hyundai's investment, vendors associated with HMI have invested ₹4,600 crore in the state, he said.
Garg highlighted Maharashtra's importance in Hyundai's manufacturing strategy, saying the Pune facility would help strengthen the company's production network in India.
The state also offers opportunities to increase localisation in vehicle manufacturing. Hyundai aims to raise the level of localisation from 83% to 92%, he said.
Hyundai is stepping up investments in India, with its domestic subsidiary expected to benefit significantly from the group's broader investment strategy, Garg said.
The company's approach includes expanding manufacturing capacity and introducing new vehicles to improve its market position.
"We are going to launch 26 new models to marry this capacity so that we can get back the market share as well," he said.
Hyundai, which previously held the second position in India's passenger vehicle sales after market leader Maruti Suzuki, slipped to fourth place in the last fiscal year.
The planned capacity expansion and new model launches are part of the company's efforts to strengthen its position in the competitive Indian automobile market.
Hyundai is also investing in the electric vehicle (EV) ecosystem in India. The company plans to introduce four EVs by 2029 and invest in charging infrastructure to support their adoption.
"We are investing a lot in the entire EV ecosystem. So not only will we have four EVs by 2029, but we will also be investing in the charging infrastructure," Garg said.
The planned investments in manufacturing, localisation and electric mobility form part of Hyundai's broader strategy to expand its presence in India and strengthen its position in the country's automobile market.
HMI is also localising the entire supply chain within battery packs, and power electronics are already being localised, he said.
Hyundai has already announced it will also go for hybrids, with the goal of making 50 per cent of its portfolio sustainable by 2030. "On the export side, we are the number one company in India to reach 4 million export landmarks. But we are still not satisfied. We want to increase further. So I think that is the second thing which we are going to do," he added.
HMI on this occasion also celebrated 30 years of its presence in India as well as the landmark achievement of cumulative exports of 4 million passenger vehicles from India since 1999, underscoring the company's contribution towards establishing India as a global automotive manufacturing and export hub.
HMI is cumulatively the largest exporter of passenger vehicles and the first automobile manufacturer to achieve 4 million exports from India. The company has also sold nearly 10 million passenger vehicles in the domestic market.
"The inauguration of Hyundai Motor India's Pune plant and the company's achievement of 4 million cumulative passenger vehicle exports reflect India's growing strength as a global automotive manufacturing hub. Hyundai's continued investments in advanced manufacturing technologies, innovation, localisation and skill development will contribute significantly to economic growth, employment generation and development of a robust automotive ecosystem in Maharashtra," said Fadnavis.
Developed as one of Hyundai's most advanced manufacturing facilities globally, the Pune plant combines Industry 4.0 technologies, AI-enabled production systems, advanced quality management processes and a fully integrated digital manufacturing ecosystem.
"India remains one of Hyundai's most important and strategic markets. The inauguration of the Pune plant reflects our long-term commitment to India's growth and our confidence in its bright future. HMI's milestone of 4 million cumulative vehicle exports demonstrates the global competitiveness of Indian manufacturing and highlights India's growing role within Hyundai Motor Group's worldwide operations," said Euisun Chung, Executive Chair - HMG.
Beyond manufacturing, HMI said it is committed to contributing to India's future through innovation, research, electrification and talent development.
"Beyond expanding manufacturing capacity, the facility will drive industrial development, innovation and employment generation in the region. Supporting this vision is a strong regional supplier ecosystem, with 55 supplier partners having already invested nearly ₹4,600 crore in the state. Together with tier-II vendors, the ecosystem has created more than 18,000 employment opportunities in Maharashtra, reinforcing the region's emergence as a key automotive manufacturing hub," said Garg.
The Pune plant also houses an engine shop with advanced manufacturing technologies, producing 150,000 engines annually to support vehicle production.
Flexible production systems can support multiple models, including ICE and Hybrid manufacturing in the future. Combined with Chennai operations, HMI's total manufacturing capacity will reach nearly 1.14 million units annually by 2030.
(With inputs from news agency PTI)
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.