‘India is a factory for the world’: Hyundai cost position over 15% better than global baseline, says CEO José Muñoz

Hyundai Motor Company’s cost position in India is more than 15% better than its global baseline, strengthening the country’s role as a manufacturing and export hub, global CEO José Muñoz said.

“We’ve been in India for 30 years, learning what customers want and how to deliver in the most efficient way possible. India is also a factory for the world. Our cost position there is more than 15% better than our global baseline,” Muñoz, president and CEO of Hyundai Motor Company, said at the company’s 2026 CEO Investor Day.

India is already Hyundai’s second-largest production base outside South Korea. Its cost advantage is supported by an established supplier network, local engineering capabilities and the scale of the company’s domestic and export operations.

Hyundai's Pune Plant to Take India Capacity to 1.1 Million Units

The opening of Hyundai’s Pune plant in 2026 will take its total production capacity in India to 1.1 million units. The company plans to add 320,000 units of capacity in the country by 2030, accounting for roughly a quarter of its planned global capacity addition of 1.27 million units.

“Our new Pune plant opens this year, taking us to 1.1 million units of domestic capacity,” Muñoz said.

Hyundai to Raise India Local Content to 90% by 2030

Hyundai plans to increase local content in its India-made vehicles from 84% currently to more than 90% by 2030.

“Localised content goes from 84% today to more than 90% by 2030, with more than 1,400 local suppliers, three-quarters of them India-based, and more than 1,300 local engineers,” Muñoz said.

“More than 60% of our vendors are clustered around Chennai,” he added.

Higher local content is expected to reduce logistics costs, strengthen supply-chain stability and help Hyundai develop vehicles around Indian customer and market requirements. It will also support higher utilisation of the company’s Chennai and Pune plants.

Hyundai India Exports Set to Rise to 30% by 2030

Exports will be another important part of Hyundai’s manufacturing strategy. The carmaker has cumulatively exported four million vehicles from India to more than 70 destinations.

“Exports rise to as much as 30% of what we build there by 2030, with half of it going to the Middle East and Africa and 40% to Central and South America,” Muñoz said.

Hyundai identified the i10, Venue and Exter as products manufactured in India for global markets. The company also plans to take the India-made Exter and Verna to additional destinations as it expands into markets where the models are not currently sold.

The combination of its cost advantage, additional capacity and deeper localisation will allow Hyundai to spread production across domestic and export demand. It will also give India a larger role in the company’s global product and manufacturing network through the end of the decade.