Investment of 20.7 trillion won earmarked through 2032 to expand R&D and localize supply chains.
Strategy aims to diversify global supply chains, with U.S. facilities tackling North American demand and the Indian hub driving exports to emerging markets.
Hyundai Motor (005380) is accelerating the reorganization of its global production footprint with a massive investment plan in India exceeding 20 trillion won. The company is adopting a bifurcated strategy: increasing local production in the U.S. to mitigate tariff risks and meet North American demand, while simultaneously expanding manufacturing capacity and export capabilities in India to solidify the region's role as a strategic global hub.
The Hyundai Motor Group plans to invest $15.5 billion (approximately 20.7 trillion won) in India between 2026 and 2032. Having acquired the Pune plant previously operated by General Motors (GM), the group intends to channel funds into research and development (R&D) and the localization of its parts supply chain, effectively transforming India into a core center for production and exports.
Pune, Abandoned by GM, Becomes Hyundai’s New Production Base: 320,000 Units by 2030
Hyundai Motor held the inauguration ceremony for its new Pune plant in Talegaon, Maharashtra, on the 14th. The facility, which ceased operations under GM in 2020, was acquired by Hyundai in 2023 and rebuilt with an investment of approximately 1 trillion won. It marks the company's third production base in India, following its existing Chennai plants 1 and 2.
The annual production capacity of the Pune plant is set to rise from its current 170,000 units to 250,000 by 2028 and 320,000 by 2030. Combined with the 824,000-unit capacity of the Chennai plants, Hyundai Motor’s total production capacity in India will reach approximately 1.14 million units by 2030. Including the Kia plant in Anantapur, the Hyundai Motor Group's total production capacity in India is projected to hit roughly 1.57 million units.
The Pune plant currently produces the "All-New Venue" compact SUV and is slated for equipment upgrades to accommodate a wider variety of models, including hybrids. Meanwhile, the Chennai facility will focus on ramping up production of both internal combustion engine vehicles and electrified models, establishing a clear division of roles between the two sites.
Hyundai is also aggressively increasing local sourcing. The company plans to raise the localization rate of components from the current 83% to 92%, focusing investments on reducing reliance on imports and strengthening the local supply chain.
Beyond Domestic Competition: Extending the Role of the Indian Export Hub
A primary challenge for Hyundai alongside capacity expansion is reclaiming local market share. While it long held the number two spot in the Indian passenger car market behind Maruti Suzuki, it has recently slipped to fourth place, trailing both Mahindra and Tata Motors.
According to the Federation of Automobile Dealers Associations (FADA), Hyundai’s retail market share in September stood at 11.75%, behind Maruti Suzuki (39.59%), Mahindra (13.42%), and Tata Motors (13.40%). As local competitors strengthen their SUV lineups, Hyundai is also accelerating new model launches, with domestic wholesale sales in September reaching 57,166 units—a 10.9% increase year-on-year.
José Muñoz, President of Hyundai Motor, stated at the Pune inauguration that he expects to reclaim the number two spot in the Indian passenger car market by 2028–2029. To compete with local rivals, Hyundai plans to launch 26 new or refreshed models in India by 2030.
Furthermore, the Indian production facilities are assuming a larger role in international exports. The All-New Venue produced at the Pune plant is currently supplied to over 30 countries, including Mexico, Chile, South Africa, and Saudi Arabia. Hyundai plans to increase the export ratio of its Indian subsidiary from the current 24% to 30% by 2030.
The roles of the U.S. and Indian hubs in the global supply chain are distinct. The Hyundai Motor Group is utilizing facilities like the Metaplant in Georgia, USA, to expand local production, thereby lowering tariff burdens and responding to North American demand. Conversely, India serves both as a supply base for its own fast-growing domestic market and as a strategic export gateway to emerging economies in the Middle East, Latin America, and Africa. With the expansion of the Pune plant, India's role as a vital export hub is poised to grow significantly.
Hyundai Motor Group Executive Chair Euisun Chung has underscored India's importance as a strategic anchor for future growth. "India is a strategic nation that will lead the Hyundai Motor Group's future growth and expansion into emerging markets," Chung noted. "We will proactively respond to the continuous growth of the Indian automotive market through stable production and further expand our exports to emerging economies."
