Hyundai Motor India has announced an aggressive capital expenditure plan of ₹7,500 crore for FY27, marking its highest investment cycle in recent years. The company plans to use the investment to expand manufacturing capacity, launch new SUV models, strengthen EV offerings, and regain its position among India’s top passenger vehicle manufacturers.
The automaker confirmed that two entirely new vehicle nameplates will be launched during FY27, including a localized electric compact SUV aimed at accelerating Hyundai’s electrification strategy in India. The second launch will strengthen Hyundai’s presence in the fast-growing internal combustion engine (ICE) SUV segment.
Nearly 45–50% of the planned capex will be allocated toward product development, while the remaining investment will support capacity expansion at Hyundai’s Chennai and Pune manufacturing facilities. The Pune plant is expected to add another 70,000 units of production capacity post Phase-II expansion, taking Hyundai’s total manufacturing capacity in India to around 1.14 million units by 2030.
Despite a decline in quarterly net profit due to rising commodity prices, Hyundai remains optimistic about FY27 growth and expects domestic sales and exports to grow by 8–10%. The company is also focusing on strengthening India as a manufacturing hub for emerging global markets.
Why This Matters
• Strengthens India’s EV and SUV manufacturing ecosystem
• Accelerates Hyundai’s localization and electrification strategy in India
• Boosts automotive manufacturing capacity and industrial investments
• Enhances India’s role as a global export hub for passenger vehicles
• Supports employment generation and auto supply-chain expansion
• Intensifies competition and innovation in India’s rapidly growing EV market