Hyundai Motor Considers Third Plant in India

Hyundai Motor India is contemplating the construction of an additional manufacturing facility in the country, sources have revealed. The company is assessing two potential locations, Chhatrapati Sambhajinagar in Maharashtra and Sanand in Gujarat, to bolster production and meet rising domestic demand. This capacity expansion is expected to assist Hyundai in preparing for a significant increase in vehicle launches and exports, as India is expected to become a pivotal growth market for the Hyundai Motor Group.

According to local reports, an Indian media outlet claims to have learned from an official that Hyundai Motor India is seeking a third manufacturing site, though discussions are still in the preliminary stages. The prospective plant is not yet set to commence operations around 2030, with production capacity plans to grow over the next 5 to 7 years.

If realized, the investment could reach over $2 billion, complementing Hyundai Motor India's existing plan to invest around 450 billion rupees ($4.89 billion) by the 2030 fiscal year. The new plant is anticipated to produce mid-size SUVs, multi-purpose vehicles (MPVs), and electric vehicles for both Indian and overseas markets. Hyundai Motor India is currently running its operations from the Sriperumbudur plant in Tamil Nadu and the Talegaon plant in Maharashtra, with the latter expanding to complement the Sriperumbudur plant.

However, the existing facilities are projected to fall short of meeting Hyundai's production needs as the company plans to introduce 26 new models, including SUVs, hybrid, and electric vehicles, by the 2030 fiscal year. The expansion of SUVs accounts for around 70% of Hyundai's domestic sales in India, and the rural market has shown a 23% increase in sales compared to the previous year.