Hyundai Motor India to invest ₹32,000 crore in 10 years to increase production capacity; check details

India’s second-largest carmaker, Hyundai Motor India Ltd (HMIL), plans to invest around ₹32,000 crore by 2032 to expand its production capacity, fund new launches and product development, according to the documents filed with the market regulator SEBI.

According to the company’s RHP, Hyundai Motor India, the Indian arm of the Korean carmaker Hyundai, has proposed an investment of ₹32,000 crore between 2023 and 2032 in its operations to fund the growth plans. The company will invest in capacity expansion, platform and product development and new model launches. Moreover, HMIL is also looking to expand its electric vehicle portfolio in India.

HMIL to invest in Talegaon, Chennai plants

The company plans to invest in its Chennai and Talegaon (Maharashtra) plants. HMIL has signed MoUs with the state governments of Tamil Nadu and Maharashtra, committing an overall investment of ₹32,000 crore.

According to Hyundai Motor India MD and Chief Executive Officer Unsoo Kim, the company will invest ₹26,000 crore in the Chennai Plant and ₹6,000 crore in the Talegaon plant to increase production capacity. The Talegaon Manufacturing Plant has yet to start operations but is scheduled for commissioning in the second half of 2025.

HMIL looks to increase production capacity to 1.1 million units

The investment aims to increase the overall production capacity to 1.1 million units per annum by 2028. Through capacity expansion, the company looks to meet future domestic and export demand for its products. The company has fixed a production target of 775,000 units for 2024, up from 765,000 units in the previous year.

In the first phase, its Pune plant will have a capacity of 1,70,000 units. In the second phase, the capacity will be increased by 80,000 units to 2,50,000 units per annum.

HMIL looks to expand EV portfolio

The company also looks to increase its footprint in the emerging battery-electric vehicle segment. HMIL will launch four EV models in the medium term, which will span segments. The models include a mass-market e-car, Inster EV, an electric version of Creta SUV, and premium offerings.

Hyundai Motor India IPO to open on Oct 15

The ₹27,870-crore IPO of Hyundai Motor India is set to open for subscription on October 15, 2024. The company has fixed the price band at ₹1,865-1,960 per share for the IPO, which is an entire Offer for Sale (OFS) of 14.22 crore shares.

The proceeds from the issue will go to promoters of Hyundai Motor India Ltd. The minimum lot size for retail investment is a single lot of 7 shares, aggregating to a minimum investment of ₹13,720.

The IPO will close for bidding on October 17. Hyundai Motor India listing data has been tentatively fixed as October 22. Shares of Hyundai Motor India Limited will be listed on the BSE and NSE.