Hyundai India Set to Invest Rs 32,000 Crore for Expansion from 2023 to 2032
Hyundai Motor India Ltd (HMIL) is poised to make its stock market debut in India on October 22, with plans to invest Rs 32,000 crore in its Indian operations between 2023 and 2032, according to a report by Moneycontrol.
The Indian arm of the South Korean automotive giant aims to enhance its production capacity, develop new products and platforms, and introduce several new models. Hyundai is also sharpening its focus on expanding its footprint in the Battery Electric Vehicle (BEV) market to meet future demand.
Major Expansion Plans in India
Hyundai’s Red Herring Prospectus (RHP) reveals that the company has signed a memorandum of understanding (MoU) with the Tamil Nadu government for its Chennai manufacturing plant and agreements with the Maharashtra government for a new facility in Talegaon. These agreements will account for the Rs 32,000 crore investment package.
According to the report, Rs 26,000 crore will be allocated for the expansion of the Chennai plant, while Rs 6,000 crore will go toward the Talegaon facility in Pune. This expansion will boost Hyundai’s annual production capacity from 824,000 units to 1.1 million units by 2028, allowing the company to meet both domestic and export market demands.
Hyundai India has set a production target of 775,000 units for 2024, up from 765,000 units in 2023. The new Pune facility is expected to begin operations in late 2025 with an initial capacity of 170,000 units. A second phase of expansion will add 80,000 units, bringing the plant’s total capacity to 250,000 units.
In addition to expanding production, Hyundai is pushing forward with an ambitious electric vehicle (EV) strategy. The automaker plans to launch four new electric models in the medium term, spanning various market segments. These include a mass-market EV, premium options, the Inster EV (a competitor to the Punch EV), and an electric version of the popular Creta SUV.
Financial Performance and IPO Details
Hyundai reported a total income of Rs 71,302 crore and a profit of Rs 6,060 crore for the fiscal year ending March 2024, a significant increase from Rs 61,436 crore in income and Rs 4,709 crore in profit in FY23.
In addition to its expansion plans, Hyundai has announced the launch of India’s largest initial public offering (IPO), valued at Rs 27,870 crore. The IPO will open for subscription on October 15 and close on October 17, with a price range set between Rs 1,865 and Rs 1,960 per share. Anchor investors will place bids on October 14.
HMIL COO Tarun Garg commented that the IPO represents an opportunity for the company to adopt global standards of excellence, operations, and governance, further solidifying Hyundai’s position in the Indian market. “The brand Hyundai has been well-received in India, and this is the right time to move forward with the IPO,” he added.
