Hyundai India aims for yearly output of 1 million units and eyes 4 BEV rollouts over next few years

HMIL is also planning to launch four battery electric vehicles (BEVs) in future, including its most affordable electric car, in the next few years

Hyundai Motor India (HMIL), which had earlier proposed an investment of Rs 32,000 crore, is gearing up to increase its production capacity by 30 percent and also widen its footprint in the Battery Electric Vehicle (BEV) market. The South Korean carmaker is looking at an annual output of one million units across its three production lines in the medium term,  according to the company's preliminary IPO papers filed with SEBI.

Currently, HMIL operates two integrated manufacturing plants in Sriperumbudur, Chennai, with a combined annual production output of 8,24,000 units per annum (until March-end). It bought over the Talegaon plant in Maharashtra from General Motors in December last year for Rs 787.2 crore.

“By aiming to maintain capacity utilisation above 90 percent with a healthy mix between domestic sales and exports, we plan to optimise operations across all plants, with a profit-centric approach,” the company mentioned in its Draft Red Herring Prospectus (DRHP).

Hyundai India expects its total annual production capacity across its manufacturing plants to increase to 9,94,000 units when the Talegaon manufacturing plant is partly operational and to 10,74,000 units once it is fully operational.

The country’s second largest carmaker also intends to deepen its localised supplier network by adopting a localisation strategy for the Talegaon plant.

“We plan to develop the Chennai manufacturing plant as a hub for our EV and SUV production. Further, with the addition of the Talegaon manufacturing plant, which is expected to start commercial operations partly in the second half of fiscal 2026, we are expanding our manufacturing capacity to boost production volume and accelerate economies of scale to match our supply capabilities in line with the growing demand in the domestic market,” the company has said in the DRHP.

At present, Passenger Vehicle (PV) market leader Maruti Suzuki has the biggest annual production capacity, which currently stands at 2.25 million units per annum . Suzuki's Indian arm is now planning to ramp up the output further to 4 million units per annum by FY2030.

EV rollouts in full swing

HMIL is also planning to launch four battery electric vehicles (BEVs) in future, including its most affordable electric car, in the next few years. At present, the company sells two premium EV models in India - IONIQ5 and Kona Electric -- priced at around Rs 45 lakh and Rs 24 lakh respectively.

“We seek to calibrate our EV strategy and plan our EV timelines in line with market demands in India by launching the appropriate EV models within each price segment, HMIL said in the DRHP.

Following a transition strategy, Hyundai India will start with the launch of high-end, premium e-car. The mass market model will be offered when the EV market and ecosystem scale up in the country. While the company mentioned that the Creta EV is slated for launch in the fourth quarter of the current financial year, it didn't share the timelines of the rollouts of other BEVs.

The Seoul-based carmaker also said that it is is looking to maximise the “price competitiveness” of its e-cars and intends to focus on securing “local production capabilities” for key parts, such as cells, battery packs, power electronics, and drivetrain and building a localised EV supply chain.

The company has already leased a section of the Chennai manufacturing plant to Mobis for the assembly and sourcing of EV batteries for its domestic operations, thus reducing its import costs for battery packs. It is also looking to indigenise the EV supply chain through collaboration with both local and global EV power electronics vendors.