Hyundai Motor India Ltd (HMIL) increased its localisation level to 81.7 percent in the fiscal year 2024-25 for internal combustion engine (ICE) vehicles, up from around 78 percent the previous year. Since 2019, the company has localised more than 1,200 components in collaboration with nearly 200 suppliers.
In its annual report for 2024-25, HMIL highlighted ongoing efforts to develop a comprehensive electric vehicle (EV) ecosystem in India. This includes localised EV manufacturing and battery pack assembly in Chennai, supported by strategic partnerships aimed at cell localisation. The company stated that many future EV models will incorporate locally produced battery cells to improve cost efficiency.
HMIL currently produces 14 passenger vehicle models and over 450 variants across its facilities using a flexible manufacturing system based on a common platform architecture. This system allows nine models to be produced at one Chennai facility and six models at another, with one model shared between both plants. The approach supports dynamic production adjustments according to market demand, enables simultaneous manufacturing of multiple models, and contributes to reduced product development costs and shorter time-to-market.
To manage these operations, Hyundai India utilises advanced IT systems including the Global Dealer Management System (GDMS), Distributor Trading System (DTS), and Advanced Planning and Scheduling (APS). These systems facilitate real-time communication with dealers and vendors and automate production planning and material management, ensuring efficient supply chain coordination.
HMIL is also expanding its manufacturing capacity with the upcoming operational launch of the Talegaon plant in Maharashtra in the third quarter of fiscal year 2025-26. The new facility will initially add 170,000 units to the company’s annual production capacity, eventually increasing to 250,000 units. Combined with the Chennai Manufacturing Plant, which has an annual capacity of 824,000 units, Hyundai aims to surpass one million units produced annually in India.
Hyundai is advancing its Software-Defined Factory (SDF) initiative to transform its manufacturing sites into intelligent ecosystems. The Industrial Internet of Things (IIoT) network at the Chennai plant connects over 86 percent of critical machinery, generating more than 20 billion data points annually. Data is analysed through 200 smart dashboards to inform decision-making and drive continuous improvements. The company is also exploring technologies such as Generative AI, 5G, and next-generation digital twins to enhance design cycles, material selection, and quality control.
“Driving this transformation is our Software Defined Factory (SDF) vision, where data, connectivity, and intelligence converge. Our IIoT infrastructure currently links over 2,000 critical machines, generating more than 20 billion data points annually. Real-time dashboards monitor over 300 process parameters. We are actively exploring advanced technologies such as Generative AI, digital twins, and 5G integration in manufacturing, and quality systems into a unified ecosystem. Platforms like Innovation Month and the Manufacturing Excellence Expo cultivate ideation and collaborative problem-solving across our teams,” said Gopalakrishnan CS, Whole-time Director & Chief Manufacturing Officer, Hyundai Motor India Limited.
“We are focused on integrating the Talegaon plant seamlessly, accelerate EV manufacturing, advance our digital transformation, and further build an agile, sustainable, and inclusive manufacturing organization,” he added.
The report also mentioned a dedicated battery assembly line operated with Mobis India, which is intended to enhance supply chain resilience and reduce costs. Regarding EV infrastructure, HMIL has deployed nearly 80 fast chargers and plans to expand this network to over 600 within the next six to seven years. This expansion will include Smart Home Charging options (up to 11kW) and the myHyundai CMS platform for integrated charging, payment, and after-sales support.
Quality assurance remains a key focus throughout Hyundai’s manufacturing process. The company employs advanced engineering tools during new model development such as Digital Pre-Assembly, Virtual Reality, Weld Robot Gun Simulation, and Stress Analysis. Within production, machine learning and deep learning-based vision systems monitor sealer application and part assembly. Dimensional accuracy is verified using 3D scanning and Coordinate Measuring Machines (CMM). Engines and transmissions undergo rigorous testing, including cold tests and performance validation on dedicated benches.
The assembly process includes AI-driven vision systems to verify specifications and calibrate Advanced Driver Assistance Systems (ADAS). Each vehicle is subjected to a 100 percent shower test and is driven on a 1.3 km test track simulating diverse road conditions. Electronics testing and torque verification using the Hyundai Integrated Vehicle Inspection System ensure quality before final sign-off.
Key manufacturing efficiency initiatives during fiscal year 2024-25 include launching an Augmented Reality (AR) assembly training system and six Virtual Reality (VR) training modules, increasing EXTER production line capacity by 1.5 times, installing waste heat recovery and aerogel insulation systems in the Paint Shop to reduce steam consumption and heat loss, enhancing wheel alignment accuracy, and integrating AI vision systems for real-time defect detection in the Powertrain division. Additional improvements included replacing obsolete machines, installing a sunroof loader to reduce downtime, and enhancing engine shop inspections with critical hole inspection and 100 percent automatic sealant verification.
Hyundai Motor India Ltd is the Indian subsidiary of Hyundai Motor Company, engaged in manufacturing and marketing passenger vehicles. It has developed localisation capabilities through collaboration with a wide network of suppliers and is advancing its EV production capacity and supporting infrastructure in line with industry trends.