Hyundai Motor India to Increase Production Capacity to 1.14 million Units by 2030, Boost Localisation
- IBEF
- October 27, 2026
Hyundai Motor India Limited (HMIL) plans to increase its annual production capacity to 1.14 million vehicles by 2030 and raise component localisation to 92% by 2032, strengthening its manufacturing base and domestic supply chain. The company currently has an installed annual capacity of 9.94 lakh vehicles, including 8.24 lakh units across its two Chennai plants, which serve domestic and export markets. HMIL has sold nearly 14 million vehicles from India, comprising approximately 10 million units in the domestic market and four million through exports. According to Managing Director and Chief Executive Officer Mr. Tarun Garg, the company currently sources around 83% of its components locally at the Tier-1 supplier level, with more than 1,200 localised components and approximately 200 Indian supplier partners. The expansion plans come amid the growth of India’s passenger vehicle market, which has increased from 3.7 lakh units in 1998 to an estimated 52.5 lakh units in 2026.
The automaker is also expanding its sport utility vehicle (SUV) portfolio and offering a broader mix of compressed natural gas (CNG), electric and hybrid vehicles to address changing consumer demand. HMIL plans to launch a mass-market compact electric SUV later in the current financial year, alongside the Bayon, as part of its strategy to strengthen its presence in growing vehicle segments. Industry trends are supporting this expansion, with SUVs, CNG vehicles and electric vehicles recording year-on-year growth of 29%, 40% and 77%, respectively, according to the company. The mid-size SUV segment has grown from 1.1 lakh units in 2015 to 8.7 lakh units in 2026, registering a compound annual growth rate (CAGR) of 21%, compared with around 6% for the overall passenger vehicle market. Through capacity expansion, greater localisation and a wider powertrain portfolio, Hyundai aims to strengthen its competitiveness in India’s automotive market and support its domestic and export operations.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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