Hyundai Motor India to hike production capacity to 1.14 mn units by 2030,boost localisation

New Delhi: Hyundai Motor India Ltd (HMIL) plans to increase its annual production capacity to 1.14 million units by 2030 and raise localisation of components to 92 per cent by 2032 as it looks to strengthen its manufacturing base and tap growth opportunities in the domestic market.

The company has an installed annual production capacity of 9.94 lakh vehicles and has sold nearly 14 million vehicles from India, including 10 million in the domestic market and 4 million through exports, HMIL Managing Director & CEO Tarun Garg said at the launch of the new model, Bayon here.

"Today, Hyundai Motor India has an installed annual capacity of 9,94,000 units. By 2030, this will increase to 1.14 million units. Our two Chennai plants remain at the heart of our domestic and export operations with an annual capacity of 8,24,000 units," he said.


On localisation of components, Garg said the company sources around 83 per cent of its components locally at the Tier-1 supplier level and aims to increase the share to 92 per cent by 2032.

"Our localization content at Tier 1 level stands at approximately 83 per cent, with more than 1,200 localized components. Our vendor ecosystem comprises around 200 Indian supplier partners. By 2032, we aim to increase localization to 92 per cent," he said.

Hyundai's capacity expansion and localisation targets come against the backdrop of growth in India's passenger vehicle market, which has expanded from 3.7 lakh units in 1998 to an estimated 52.5 lakh units in 2026, Garg said. HMIL started operations in India with sales of 8,500 units in 1998.

The automaker is also looking to expand its presence across SUV segments and offer a wider choice of powertrains, including CNG, electric and hybrid vehicles.

"We will expand across growing SUV segments and offer a broader mix of CNG, electric, and hybrid choices. Artificial intelligence and software will increasingly shape the ownership experience, creating vehicles that listen, connect, and deliver increasingly personalized experiences throughout the ownership journey," Garg said.

He said SUVs, CNG vehicles and electric vehicles were driving the next phase of growth in the Indian automotive market.

"SUV, CNG, and EV are driving the next wave of industry growth. SUVs have grown by 29 per cent year-on-year, CNG by 40 per cent, and EVs by 77 per cent," he said.

Hyundai plans to launch a mass-market compact SUV electric vehicle later in the current financial year. The Bayon is one of two new nameplates planned for the fiscal, with the electric SUV being the second, Garg said.

"Together, these products will expand Hyundai's presence in important growing spaces and give customers a wider choice of powertrains, technology, and mobility solutions," he said.

Highlighting the growth of the mid-size SUV segment, Garg said it had expanded from 1.1 lakh units in 2015 to 8.7 lakh units in 2026, significantly outpacing the overall passenger vehicle market. "This segment has grown at an astonishing 21 per cent CAGR compared to around 6 per cent for India's total passenger vehicle market," he said.

"With Bayon, we intend to further strengthen Hyundai's leadership in mid-SUV segment, and the belief comes from 30 years of listening closely to our customers," Garg added.

The Bayon, which comes at a starting ex-showroom price of Rs 9.99 lakh, is positioned between the sub 4-meter compact SUV Venue and mid-size SUV Creta in Hyundai's portfolio. The automaker is adding the model as it seeks to expand in the segment with a second product, while Creta sales have come under pressure recently.