Pune News: Hyundai Motor’s Talegaon Expansion Set to Fuel Growth in Domestic and International Markets
Pune News: Hyundai Motor's Talegaon Expansion Set to Fuel Growth in Domestic and International Markets
Hyundai Motor India announced on Tuesday that its planned Rs 6,000 crore capacity expansion at the Talegaon manufacturing facility aims to enhance its growth potential in both domestic and international markets. The company is focused on achieving a balance between growth, profitability and market share.
During a post-listing media interaction, Tarun Garg, Chief Operating Officer of Hyundai Motor India, highlighted that the existing manufacturing capacity of 8.24 lakh units per year will increase by 2.5 lakh units through this expansion. The capacity addition will be implemented in two phases: 1.7 lakh units expected by next year and an additional 80,000 units by 2028. Once the expansion is completed, Hyundai’s total manufacturing capacity will rise to approximately 1.1 million units annually.
Garg stated, “This almost 30% increase in capacity will provide us with ample room to grow in both the domestic and export markets.” He emphasized that Hyundai has consistently outperformed the overall industry growth and aims to maintain this trajectory while focusing on premium products.
A significant aspect of the expansion plan involves a strategic push into the electric vehicle (EV) market. Currently, Hyundai holds a marginal market share in this segment, primarily focusing on internal combustion engine (ICE) vehicles. Garg announced that the company plans to launch the Creta EV in the coming quarter, a move expected to strengthen its position in the global EV market. “This well-established brand will significantly contribute to our market share in the EV space,” he explained.
Following the launch of the Creta EV, Hyundai intends to introduce three additional EV models. The strategy includes increased localization of the supply chain, focusing on components like battery packs, lithium iron phosphate (LFP) cells, and power electronics. Garg noted that localizing battery packs is currently underway to enhance the competitiveness of Hyundai’s EV offerings.
“Partnering with local Indian suppliers for LFP cell manufacturing and other localization efforts will bolster our production capabilities. We believe this comprehensive and well-thought-out strategy positions us to play a significant role in the electrification of the automotive market,” he added.
Garg also mentioned the rising contribution of SUVs to Hyundai’s sales, with their share increasing from 60% in 2023 to 67-68% this year. The introduction of the Creta EV will provide a critical opportunity to expand market share in the EV sector, moving beyond the niche segment where Hyundai has operated thus far.
As part of its future roadmap, Hyundai aims to continue identifying opportunities for new product launches across various power ranges and body types, ensuring it remains ahead of market trends.
