(Pune [India] = Yonhap News) Reporter Jang Ha-na = Celebrating the 30th anniversary of its entry into India, Hyundai Motor Company is taking a 'second leap' by securing a new local production base as a bridgehead for future growth.
Hyundai Motor Company held a completion ceremony for its new Pune plant in Talegaon, Maharashtra, central India, on the 14th (local time).
The new Pune plant is Hyundai Motor Company's third production base in India, following the Chennai plants 1 and 2, which are currently in operation. Previously, Hyundai Motor Company acquired the former General Motors (GM) plant, which had ceased operation immediately after the COVID-19 incident, at the end of 2023 and rebuilt it as a smart manufacturing base.
The completion ceremony was attended by political figures from both countries, including Maharashtra Chief Minister Devendra Fadnavis, Congressman Shrirang Apavarne, and Ambassador to India Lee Seong-ho. Key executives from the Hyundai Motor Group, including Chairman Chung Eui-sun, Vice Chairman Jang Jae-hoon, Hyundai Motor Company CEO Jose Muñoz, and Hyundai Motor India (HMIL) CEO Tarun Garg, all attended the event.
Chairman Eui-sun Chung said in his welcoming speech, “Since the launch of the first local car model, Santro, India has become a key axis in Hyundai Motor Company’s global growth process,” and “The Pune plant completion ceremony will be an opportunity for Hyundai Motor Company to open a new chapter in India.”
He added, “Hyundai Motor Group will invest $15.5 billion (about 20.8 trillion won) in India by 2032 to develop next-generation manufacturing technology, innovation, and research and development (R&D).”
Hyundai Motor Company, which established a local corporation in India in 1996, has grown into an automobile brand that sells around 600,000 units annually there. The Chennai factory, the first production base, is responsible for exporting approximately 180,000 units to the Middle East, Central and South America, and Africa as well as domestic sales in India.
The Pune plant, located on a site of 1.21 million square meters (approximately 360,000 pyeong), which is 166 times the size of a soccer field, is equipped with not only an automobile assembly plant, but also an engine plant, driving test site, and employee training facilities. The investment amount is 1 trillion won, and the annual production capacity is 170,000 units.
Hyundai Motor Company plans to expand the production capacity of its new Pune plant to 250,000 units in 2028 and 320,000 units in 2030. We have established a flexible production line that can respond to future demand, such as for future hybrid vehicles (HEV).
Since the fourth quarter of last year, the company has been producing the ‘All New Venue’ (2nd generation Venue), a compact sports utility vehicle (SUV), a popular local model. In addition to selling to the Indian domestic market, we are exporting to over 30 countries around the world, including Mexico, Chile, South Africa, and Saudi Arabia.
Hyundai Motor Company has largely incorporated smart manufacturing technology into its new plant in Pune.
An artificial intelligence (AI)-based crack detection system inspects panel quality by automatically detecting fine cracks, and about 200 industrial robots are in charge of welding work in the car body process, where worker fatigue is high.
In addition, we are conducting augmented reality (AR)-based education training for employees to improve their skills before entering the process.
With the full-scale operation of the new Pune plant, Hyundai Motor Company has secured an annual production capacity of close to 1 million units in India, including the existing Chennai plants 1 and 2 (824,000 units).
As the new Pune plant takes charge of production of the Venue, a local strategic vehicle model, the Chennai plant, the existing production base, is able to speed up the transition to electric vehicles (EV).
The Indian government is implementing various support measures with the goal of expanding the proportion of electric vehicles in new car sales to 30% by 2030. In particular, the Production Linked Incentive (PLI) has been introduced to provide subsidies to companies that manufacture electric vehicles and procure parts in India.
In addition to the IONIQ 5 and Creta EV currently on sale, Hyundai Motor Company plans to launch a new compact (Indian vehicle class) electric SUV as a local strategic model in the first quarter of next year.
In conjunction with the new plant's completion ceremony, Hyundai Motor Group's mid- to long-term investment plan for India was also officially announced.
Chairman Chung met with Prime Minister Narendra Modi the day before and said, "India is a strategic country that will drive Hyundai Motor Group's future growth and expansion into emerging markets," and added, "We are planning an investment of about $15.5 billion (about 20.8 trillion won) over the next seven years starting this year."
Accordingly, Hyundai Motor Group plans to expand investment in expanding production facilities, strengthening research and development (R&D) capabilities, improving local supply chain competitiveness, and developing new future technologies.
