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Hyundai Motor India Ltd (HMIL) plans to invest ₹7,500 crore in fiscal year 2027 to expand its production capacity to 1.144 million units annually, primarily through phased development of its Pune facility, making it the largest capital expenditure the company has made in India. The investment will support a wider rollout of SUVs and electric vehicles, as the company aims to strengthen its market position amid growing competition from Tata Motors and Mahindra & Mahindra.
At present, Hyundai operates with a combined annual capacity of 994,000 units, including 824,000 units from its Chennai plant and 170,000 units from Pune. The Pune plant will be scaled up in two phases, first to 250,000 units and eventually to 320,000 units. The company plans to launch two new models in FY27—a petrol-powered SUV and an electric SUV—as part of a broader product refresh to defend its share in key segments.
In FY26, Hyundai reported total sales of 775,031 units, a 1.7% increase year-on-year, with exports rising 16.4% to 190,125 units while domestic sales fell 2.3% to 584,906 units. SUVs accounted for 68% of domestic sales, led by the Creta, Exter, and Venue. The company also recorded a record 25% rural market penetration and 18% CNG vehicle contribution in Q4, alongside revenue growth of 2.3% to ₹70,763 crore, though EBITDA margin declined to 12.2% from 12.9% due to inflation and capacity stabilization costs.
Hyundai's expansion aligns with its strategy to scale electric and alternative fuel vehicle production following the launch of the Creta Electric and expansion of its CNG lineup. The company will proceed with facility upgrades and new model introductions through FY27.