Industry Odisha Bureau, Oct 15: Hyundai Motor India will expand its new Talegaon plant to 320,000 vehicles a year. The added output underpins its aim to regain second place by 2028–29. Rivals have pulled ahead.
Hyundai Motor India wants its old ranking back. The carmaker aims to regain second place in India’s passenger vehicle market by 2028–29. Its bet rests on more production from its newly inaugurated Talegaon plant in Pune.
Hyundai Motor president and chief executive Jose Munoz set out the target on Wednesday. He spoke at the plant’s opening, attended by Maharashtra chief minister Devendra Fadnavis. Senior officials from Hyundai’s global headquarters were also present.
Munoz framed the challenge as one of production. Tarun Garg, who heads Hyundai Motor India, wants more cars, Munoz said. Once Talegaon reaches 320,000 units a year, the target should follow, he added.
The plant currently has installed capacity of 170,000 vehicles a year. Hyundai will expand it in phases to 320,000 by 2030. With its Chennai operations, total Indian capacity would then reach nearly 1.14 million units. The ranking target therefore precedes full build-out of the plant.
Capacity matters in a market where waiting periods can shape buyer choices. Greater output can shorten delivery timelines and improve model availability. It also allows more flexibility as demand shifts between segments.
Hyundai’s slide has been steady. It lost second place in calendar 2025, ending a 25-year run. Mahindra & Mahindra and Tata Motors moved ahead, pushing Hyundai to fourth. Its retail market share fell to 12.29% in FY26 from 13.48% a year earlier.
By end-September 2026, it stood at 11.75%, against 11.81% a year ago. Capacity alone does not guarantee a higher ranking. Buyers also weigh pricing, design, features and dealer reach. Competitors including Maruti Suzuki, Tata Motors and Mahindra & Mahindra contest those same customers.
Hyundai plans 26 new models to refresh its line-up. The Creta and Exter maker hopes a wider range will win back buyers across segments. Garg said the highly automated Pune plant offers a strong base for future hybrids.
Hyundai has invested about ₹7,000 crore in Maharashtra. Its 55 supplier partners have invested nearly ₹4,600 crore in the state. Those investments have generated over 18,000 jobs, including at tier-II vendors.
The company aims to raise localisation from 83% to 92%. Higher localisation means sourcing more components domestically, which can reduce costs and currency risk.
The parent is also deepening its commitment. Hyundai Motor Group on Tuesday announced $15.5 billion of Indian investment over seven years. It will span manufacturing, R&D, localisation, technology and startups.
India is Hyundai’s second-largest market by volume, after the US, Munoz said. He called Indian consumers the most demanding in the world. Success here, he argued, would signal strength everywhere.
Munoz insisted the company was not fixated on rankings. Good products and quality come first, he said, and the rest will follow.
Hyundai now has the factory space to support its ambitions. Turning that capacity into sustained sales against strong rivals is the harder task. Its share figures show that recovery has yet to begin.
