Hyundai Motor India has announced plans to expand production capacity at its Talegaon facility in Pune with an investment of Rs 6,000 crore. This expansion will provide the company with more flexibility to support both domestic growth and international exports.
During a media briefing, Hyundai emphasized its commitment to balancing growth, profitability, and market share, while also addressing its ambitions in the electric vehicle (EV) segment, where it currently holds a smaller share.
“Our existing capacity is 8.24 lakh units per year. With the addition of 2.5 lakh units from the Talegaon plant, phased across two stages—1.7 lakh units next year and 80,000 units by 2028—we will see almost a 30% capacity increase. This will give us more room to grow in both domestic and export markets,” stated Tarun Garg, Chief Operating Officer of Hyundai Motor India.
Once the expansion is complete, Hyundai’s total manufacturing capacity will reach approximately 1.1 million units annually. Garg noted that Hyundai has consistently grown faster than the overall industry and aims to continue outpacing market growth. The company plans to focus on premium products while maintaining a balance between growth, profitability, and market share.
One significant shift will be the company’s push into the EV market. “Currently, our market share is primarily in internal combustion engine (ICE) vehicles. In the coming quarter, we will launch the Creta EV, which is a well-established brand, and this will help us strengthen our global market position in the EV segment,” he said.
The Creta EV launch will be followed by three additional models, all backed by a stronger supply chain, including localized production of battery packs, LFP cells, and other key components, along with improved charging infrastructure.
“The localization of battery packs is already underway, which will help us position our EVs competitively. Future collaborations with local partners for LFP cell manufacturing and further localizations will also enhance our capabilities. It’s a comprehensive and well-planned strategy, and we believe the timing is right to increase our presence in the EV market,” Garg added.
Hyundai’s SUV share has also seen significant growth, reaching 67-68% in 2024, compared to 60% in 2023. The company is optimistic that the Creta EV will offer new opportunities to increase its EV market share. “We have always led the way in product launches, and we will continue to identify new opportunities across powertrains and body styles as we move forward,” Garg concluded.
