Hyundai Motor India to Invest $1.16 Billion in Pune Plant

Hyundai Motor India plans to invest ₹11,000 crore in its Pune plant, increasing annual production capacity from 170,000 to 320,000 vehicles by 2030 through manufacturing expansion and AI-powered operations.

Hyundai Motor India plans to invest ₹11,000 crore ($1.16 billion) to expand production capacity at its Pune manufacturing plant in Maharashtra, aiming to increase annual output by nearly 90% by 2030. The announcement, made on October 14, 2026, comes as the automaker strengthens its manufacturing presence in India to meet rising vehicle demand and support future growth.

The company plans to increase the Pune plant’s annual production capacity from 170,000 vehicles to 320,000 units by 2030. The expansion will involve flexible manufacturing systems capable of producing multiple models, including vehicles powered by internal combustion engines and hybrid technology.

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Hyundai Motor India also plans to incorporate artificial intelligence into factory operations, including quality inspections and defect-detection systems. These technologies are expected to support manufacturing efficiency and product quality as production volumes increase.

With the expanded Pune facility and its existing operations in Chennai, Hyundai Motor India expects its annual production capacity to reach approximately 1.14 million vehicles by 2030. The Pune plant began operations on October 14, 2026, marking an additional manufacturing base for the company in the country.

The investment follows Hyundai Motor Group’s announcement of a broader commitment to invest $15.5 billion in India between 2026 and 2032. The group’s investment plan covers manufacturing expansion, research and development, supplier development, localisation of vehicle components and emerging mobility technologies.

India remains a key market for global automakers because of its expanding passenger-vehicle market and potential as a manufacturing and export hub. Hyundai’s expansion is intended to strengthen its production capabilities and support demand across domestic and international markets.

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The Pune investment is expected to contribute to the development of the local automotive ecosystem through manufacturing expansion, technology adoption and supplier activity. As the facility scales up, Hyundai’s focus on flexible production and AI-enabled operations will support its broader strategy to expand its presence in India’s competitive automotive sector.