Hyundai Motor India to Invest ₹7,500 crore, Expand Capacity to 1.14 Mn Units

Hyundai Motor India Ltd (HMIL) is preparing for another round of expansion in India, with plans to invest about ₹7,500 crore in FY27 to increase production capacity and support a broader pipeline of SUVs and electric vehicles. This is the highest ever CAPEX incurred by the company in the country. 

The company disclosed the plans in its investor presentation released after announcing its Q4 FY26 results. “Our growth ambition plans will be fuelled by aggressive investments of around Rs 7,500 crore in FY27, marking the highest-ever capex in recent years.” said Tarun Garg, MD & CEO of Hyundai Motor India

As part of the expansion, Hyundai plans to raise its total installed manufacturing capacity to 1.144 million units through phased development of its Pune facility.
At present, Hyundai has a combined installed capacity of 994,000 units annually, including 824,000 units at its Chennai plant and 170,000 units at the Pune facility.

The Pune plant is expected to scale up to 250,000 units initially and later to 320,000 units after the second phase of expansion.

The investment comes as Hyundai sharpens its focus on the utility vehicle market, where competition has intensified with Mahindra & Mahindra and Tata Motors steadily gaining ground.

The automaker has outlined plans to introduce two new nameplates in FY27, including a new SUV with an internal combustion engine and another electric SUV. Industry sources have indicated that Hyundai is also working on a wider refresh cycle for its India lineup as it looks to defend market share in key segments.
SUVs continued to remain central to Hyundai’s India business in FY26, accounting for 68% of domestic sales.

Models such as the CRETA, EXTER and VENUE remained volume drivers for the company during the year.

Hyundai’s push into electric mobility has also gathered pace following the launch of the Creta Electric, while the company has simultaneously expanded its CNG portfolio amid rising demand for lower running-cost vehicles.

For FY26, Hyundai reported total sales of 775,031 units, up 1.7% year-on-year, helped largely by strong export growth. Export volumes rose 16.4% to 190,125 units, while domestic sales declined 2.3% to 584,906 units.

The company also reported record rural penetration of 25% and CNG contribution of 18% during the fourth quarter, reflecting growing traction in smaller markets and alternative fuel segments.

Hyundai’s revenue for FY26 rose 2.3% to ₹70,763 crore. However, profitability remained under pressure, with EBITDA margin narrowing to 12.2% from 12.9% a year earlier due to commodity inflation and costs linked to capacity stabilisation.