Hyundai Motor India Ltd (HMIL) has announced plans to invest Rs 32,000 crore in expanding its presence in India between 2023 and 2032, with a significant focus on increasing production capacity and developing new models, particularly in the Battery Electric Vehicle (BEV) segment. This expansion includes investments in its manufacturing facilities in Tamil Nadu and Maharashtra according to a report by Good Returns.
The company has signed four memoranda of understanding (MoUs) with the Tamil Nadu government for its Chennai plant, along with agreements with the Maharashtra government for its upcoming Talegaon facility in Pune. Of the total investment, Rs 26,000 crore will be allocated to the Chennai plant, and Rs 6,000 crore will be directed towards the Pune plant.
Hyundai plans to increase its production capacity from 8,24,000 units annually to 1.1 million units by 2028. The Pune plant, expected to commence operations in the second half of 2025, will have an initial capacity of 170,000 units per year, which will later be expanded to 250,000 units.
In fiscal year 2024, Hyundai invested Rs 32,462.08 million in property, plant, and equipment, contributing to the company’s ongoing expansion. The company produced 7,65,000 units in 2023 and has set a target of 7,75,000 units for 2024.
In addition to capacity expansion, Hyundai’s strategy includes a shift toward Sport Utility Vehicles (SUVs) and electric vehicles (EVs). The company plans to launch four BEV models in the coming years, including a mass-market electric vehicle and an electric version of the Creta SUV.
Hyundai Motor India reported total income of Rs 71,302 crore for the fiscal year ending March 2024, an increase from Rs 61,436 crore in FY2023. The company’s profit for FY2024 rose to Rs 6,060 crore, up from Rs 4,709 crore the previous year.
In line with its growth plans, Hyundai will launch an initial public offering (IPO) on October 22, aiming to raise Rs 27,870 crore. The price band for the IPO has been set between Rs 1,865 and Rs 1,960 per share, with public subscription open from October 15 to October 17.