Hyundai Motor is set to secure a global growth engine by strengthening research and development (R&D) and its parts supply chain based on expanded production capacity in India, which has grown into the world's third-largest automotive market. To this end, the company will secure a new production hub and pour 21 trillion won over the next seven years.
Hyundai Motor held the completion ceremony for its new Pune plant on the 14th (local time) in Talegaon, Maharashtra state, India, attended by key executives including Chairman Chung Eui-sun of Hyundai Motor Group, Vice Chairman Jang Jae-hoon, and Jose Munoz Hyeon Dae-cha (CEO) Lee Sa (President). Local dignitaries, including Devendra Fadnavis, Chief Minister of Maharashtra state, also attended the event.
In his welcome address, Jeong (Chairman) stated, "Since we first entered India 30 years ago, we have strived to earn the trust of local customers, and since launching our first model in the country, the Xcent, India has become a key pillar in our global growth process," adding that "the completion ceremony for the Pune plant will mark the opening of a new chapter in India."
Indeed, Hyundai Motor established its Indian subsidiary in 1996 and accelerated its offensive into the Indian market by unveiling the Xcent in 1998. It subsequently expanded sales by leading with locally tailored SUVs (sport utility vehicles) such as the Creta and Venue, and in October 2024, it listed its Indian subsidiary on the local stock exchange to strengthen its business foundation.
This year, marking the 30th anniversary of Hyundai's entry into India, the company is also on the verge of surpassing 10 million cumulative sales locally. According to the Society of Indian Automobile Manufacturers (SIAM), Hyundai Motor's cumulative domestic sales in India as of the end of the third quarter this year totaled 9,884,960 units. Domestic sales in India last month rose 10.9% year-on-year to 57,166 units. Total sales, including exports, reached 77,916 units, setting a new all-time monthly record.
The Pune plant is a facility reconstructed from the former General Motors (GM) plant acquired by Hyundai Motor in 2023. Hyundai transformed the plant, which had ceased operations in 2020, into a smart manufacturing hub. With the second-generation Venue, a compact SUV, as its first Yangsan car, the company plans to export not only to the Indian domestic market but also to over 30 countries, including Mexico, Chile, and South Africa.
The Pune plant's current annual production capacity is 170,000 units, with projections to expand to 250,000 units by 2028 and 320,000 units by 2030. Including the Chennai Plant 1 and 2 (824,000 units), Hyundai Motor's production capacity in India will increase from the current 994,000 units to 1,144,000 units by 2030. When combined with Kia's Anantapur plant (431,000 units), Hyundai Motor Group will be able to produce over 1.5 million units annually starting in 2028.
Hyundai Motor has introduced over 200 industrial robots responsible for welding operations at the Pune plant, along with an artificial intelligence (AI)-based crack detection system. The company is also utilizing augmented reality (AR) technology for training new employees.
Additionally, Hyundai Motor Group announced a plan to invest $15.5 billion (approximately 20.7 trillion won) over seven years from this year through 2032 to strengthen R&D capabilities and the parts supply chain in India and expand its business into future mobility sectors. New models will feature Level 2 autonomous driving technology tailored to the local market, and the electric three-wheeler being jointly developed with Indian two-wheeler manufacturer TVS is set for commercialization by the end of next year. The group also plans to establish a local investment-specialized legal entity in conjunction with its affiliates.
The high potential for market growth lies behind Hyundai Motor Group's expanded investment in India. India, with a population exceeding 1.4 billion, is the world's third-largest automotive market after the United States and China. Conversely, the number of cars per 1,000 people is lower than in major automotive markets, leaving significant room for new car demand to expand as incomes rise and road infrastructure improves.
Jeong (Chairman) has also demonstrated a focus on the Indian business. The day marked the six-year anniversary of Jeong (Chairman)'s appointment as chairman. He had visited India in January last month to inspect local plants and emphasized a "home brand strategy" to transform into an Indian national enterprise. This aims to strengthen its market position by reflecting the needs and characteristics of local consumers.
Hyundai Motor plans to unveil 26 new models and product improvement versions by fiscal year 2030 and expand its lineup of HYBE lead cars and electric vehicles. It is also pushing for the entry of its luxury car brand Genesis into the Indian market. Through these efforts, the company aims to raise its share of the Indian domestic market to over 15% while increasing the proportion of utility vehicles such as SUVs in total sales to over 80%.
Meanwhile, Hyundai Motor Group's expansion of its business in India is also leading to increased local revenues for domestic parts makers. The number of domestic parts makers that entered India alongside Hyundai and Kia grew from 68 in 2011 to over 120 with the completion of the Pune plant. Seongwoo Hi-Tech's revenue in India rose 54.6% from 345.8 billion won in 2019 to 534.6 billion won last year. During the same period, Soyeon I-Hwa and HL Mando also increased their revenues in India by over 97% and 90%, respectively.
in INDUSTRY
