He said the group is working on expanding annual capacity in India across Hyundai and Kia brands by more than a third to 1.5 million vehicles in the next one year to tap growing demand. Chung is visiting India to review the company’s mid- to long-term growth strategies in the world’s third-largest automobile market. He said the group would bolster its presence in the country, with special focus on sport-utility vehicles (SUVs) and electric vehicles (EVs).
“Hyundai Motor Group is delivering a major manufacturing advance in the Indian region with the establishment of an annual production system of 1.5 million vehicle units for Hyundai Motor India and Kia India combined,” Chung said adding, “the Group will expand its EV lineup and create an EV ecosystem to accelerate customer uptake and expand charging infrastructure. It will also strengthen its SUV sales leadership and promote social responsibility activities in consideration of Indian culture.”
To expand production, Hyundai Motor India will open its Pune plant – acquired from General Motors – in the second half of next calendar year. The company is upgrading the facility for producing more than 200,000 vehicles annually. Adding the Chennai plant’s capacity of 824,000 vehicles, Hyundai Motor India’s annual capacity will reach more than one million vehicles a year, the company said.
Meanwhile, Kia India’s annual capacity will also be expanded to 431,000 vehicles in the first half of this calendar year. Chung said Hyundai and Kia will give the conglomerate a combined production capacity of about 1.5 million vehicles a year in India.
“India is among the fastest-growing economies globally, and as this growth continues, the strategic importance of Hyundai Motor India will only increase,” he said.
In addition to the Indian market, Hyundai also plans to grow exports to neighbouring countries, making India a global export hub “to boost regional market competitiveness,” Chung said.
On EVs, Hyundai Motor India plans to unveil its first locally produced EV model, an electric SUV, next year. The company will commence mass production of the vehicle at the Chennai plant towards the end of 2024 with plans to produce a total of six EV models by 2030.
Hyundai Motor India will also utilise its sales network and expand its charging station network to 485 by 2030. “By around 2030, we expect to see a substantial expansion in the EV market. In anticipation of this evolution, Hyundai is focused on developing locally tailored EVs aimed at establishing us as a leading global EV brand,” Chung said.
We also plan to proactively build charging stations at strategic locations – including dealerships – to facilitate the adoption of EVs,” Chung said.
Kia India will also roll out its first locally produced EV model in 2025 and plans to further expand the EV range going ahead. The company will also focus on building EV charging infrastructure.