Hyundai Motor India shares rise as it begins PV engines production in Maharashtra plant

Hyundai kicks off engine production at Talegaon plant

Shares of Hyundai Motor India rose by 1.6 percent to Rs 1,970 per share on June 17 after the company announced that it has started making passenger vehicle engines at its Talegaon plant in Maharashtra.

The company informed the National Stock Exchange (NSE) and BSE that production at the Talegaon facility, located in MIDC’s Phase-II Expansion area in Tehsil-Maval, Pune District, officially began on June 16, 2025. Hyundai said this move aligns with its broader plan to grow its manufacturing presence in India.

The company clarified that this marks the beginning of engine production, and full vehicle manufacturing at the Talegaon facility will begin later, with a separate update to follow.

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Hyundai acquired the Talegaon facility from General Motors in 2023 as part of its strategy to increase local production capacity. This plant is an important part of Hyundai’s goal to meet rising demand in both domestic and export markets.

Global brokerage UBS recently initiated coverage on Hyundai Motor India with a ‘Buy’ rating and gave a price target of Rs 2,350 — the highest among analysts so far.

In its report, UBS noted that Hyundai’s capacity expansion marks a major shift in its India strategy. Hyundai Motor India (HMIL), a subsidiary of South Korea's Hyundai Motor Company, is expected to become India’s second-largest passenger vehicle maker by volume by financial year 2025.

UBS projects that HMIL will see a 10 percent growth in domestic volumes between FY26 and FY28, compared to just 2 percent growth between FY19 and FY25. The company is also expected to grow its dealership network.

On the export side, UBS estimates an 11 percent growth in volumes during FY26–FY28, compared to flat growth from FY19–FY25. This would position India as a key global manufacturing hub for Hyundai.

Additionally, UBS forecasts a 16 percent compound annual growth rate (CAGR) in EBITDA over FY26 to FY28, supported by a better product mix and improved operational efficiency.

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