Talegaon expansion is central to its ₹45,000 crore investment roadmap, which includes 26 product launches by FY2030 and a target of exporting about 30 per cent of vehicles produced in India. The automaker is ramping up production faster than initially planned, advancing third-shift operations to October 1, nearly two years ahead of schedule.
Talegaon, which began passenger vehicle production in October 2025, has an installed annual capacity of 170,000 vehicles. Combined with Chennai’s 824,000 unit capacity, Hyundai’s total manufacturing footprint in India now stands at 994,000 vehicles, just shy of the one-million mark. The company plans to raise capacity to 1.14 million units annually by 2030.
The additional capacity comes at a crucial time for HMIL, which has faced rising competition and production constraints in recent years. The company showed signs of recovery in September, with domestic sales rising 10.9 per cent year-on-year to 57,166 units and exports increasing 10.4 per cent to 20,750 units. Combined sales reached a monthly record of 77,916 vehicles. During April-September, domestic sales grew 12.3 per cent to 305,146 units.
Room for New SUVs
The shift of Venue production to Talegaon has freed up manufacturing capacity at Chennai for two upcoming models: the Bayon petrol-powered midsize SUV, scheduled for launch next week, and a compact electric SUV due in FY2026-27.
HMIL Managing Director and CEO Tarun Garg recently told investors that both vehicles will be manufactured in Chennai, supporting higher capacity utilisation and improved profitability. Chennai Plant 1 utilisation, estimated at around 72 per cent in 2026, is expected to rise to 90-92 per cent in 2027 as production ramps up.
The company is banking on new launches, higher Venue volumes and growing fleet sales to regain market share, with a long-term target of 15 per cent by 2030.
Venue Drives Export Push
Talegaon will be the exclusive global production base for the new-generation Venue. Hyundai plans to export the model to around 35 markets, compared with 28 for the outgoing generation. By July, the company had already received orders from more than 30 international markets.
HMIL aims to increase Venue exports from about 6,500 units currently to 15,000-20,000 units annually. SUVs account for only 13-14 per cent of Hyundai’s exports, versus roughly 70 per cent of domestic sales, leaving significant room for growth overseas.
The Talegaon facility dispatched more than 62,000 Venue SUVs in its first six months of operations, aided by rail connectivity and export logistics through Mumbai Port.
Brokerages Remain Positive
Brokerages see the additional capacity and product pipeline supporting Hyundai’s next phase of growth.
Motilal Oswal expects Hyundai’s volumes to grow about 9 per cent annually between FY2026 and FY2028, driven by new launches and a strong export order book, while exports could expand at around 12 per cent annually.
ICICI Securities believes new products and higher capacity will help Hyundai regain market share, although the company’s global manufacturing footprint may limit export opportunities over the longer term. Nomura expects exports to contribute more meaningfully to profitability, while Nirmal Bang sees near-term margin pressure from Talegaon until utilisation levels improve.
Hyundai plans to expand Talegaon’s capacity to 250,000 units by 2028 and 320,000 units by 2030, cementing India’s role as a key manufacturing and export hub within the group.