Labour discontent grows at Hyundai’s Chennai plant: Report

India's second-largest car manufacturer, Hyundai Motor India is facing labour unrest at its Chennai plant

India's second-largest car manufacturer, Hyundai Motor India Limited(HMIL) is facing labour unrest at its Chennai manufacturing facility as reported by Financial Express.

The automobile major at present recognises the United Union of Hyundai Employees (UUHE) as the official negotiating body. However, Hyundai Motor India Employees Union (HMIEU) has asserted that it represents over 1,350 of the 2,420 union workers, calling into question the legitimacy of the existing wage discussions.

Hyundai said that its ongoing negotiations with UUHE comply with labour regulations, as UUHE is the recognised union per the Tamil Nadu labour department. The company refrained from commenting further, citing the ongoing legal proceedings.

Hyundai, which signed its last long-term wage agreement with UUHE in July 2022 (covering April 2021–March 2024), stated it is committed to upholding a peaceful and law-abiding workplace while focusing on achieving a constructive resolution.

Hyundai's Chennai plant (Sriperumbudur) has an annual installed capacity of 824,000 units, with the utilisation being over 92%.

The carmaker currently offers two electric vehicles (EVs) -- Creta Electric and Ioniq 5. It has 12 internal combustion engine (ICE) models -- Grand i10 Nios, i20, i20 N Line, Aura, Verna, Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar and Tucson.

Hyundai was the second largest passenger vehicle (PV) manufacturer in the domestic market in FY25 at 598,666 units, ahead of Tata Motors (553,585 units) and Mahindra (551,487 units). The Creta-maker was also the second largest car exporter at 163,386 units, behind Maruti Suzuki (330,081 units).

The company recently announced the commencement of the production of PV engines at its Pune plant (Talegoan), acquired from General Motors in 2023. It will start manufacturing cars at the facility from Q3 FY26.