n the second half of FY26, Hyundai Motor India (HMIL) intends to partially open its new facility in Talegaon, Maharashtra. This will increase the second-largest carmaker in India’s overall manufacturing capacity by 21% to 994,000 units annually, the company said in its Draft Red Herring Prospectus (DRHP), which was made public on Saturday.
Furthermore, HMIL announced that it intends to introduce four electric vehicles (EVs) in India, albeit it did not provide a schedule for the introduction. The first of these four EVs will be the Creta EV, which the business stated will go on sale in the fourth quarter of the current fiscal year. By the end of this decade, the South Korean automaker plans to introduce five electric vehicles (EVs) into the Indian market, as it announced in April.
The Chennai manufacturing facility will serve as a centre for the production of our sport utility vehicles (SUVs) and electric vehicles (EVs). Furthermore, as stated in its DRHP, “We are expanding our manufacturing capacity to boost production volume and accelerate economies of scale to match our supply capabilities in line with the growing demand in the domestic market with the addition of the Talegaon manufacturing plant, which is expected to start commercial operations partially in the second half of FY26.”
As of March 31, the Chennai factory has an annual manufacturing capacity of 824,000 units. HMIL stated that it intends to maintain capacity utilisation above 90% with a balanced mix of domestic sales and exports. “We expect our annual production capacity across the Chennai and Talegaon plants in aggregate to increase to 994,000 units when the Talegaon plant is partly operational and to 1,074,000 units once the Talegaon plant is fully operational,” the company stated.
HMIL also plans to implement a localization strategy for the Talegaon facility in India in order to further strengthen its network of localised suppliers. HMIL revealed that it paid Rs 787.2 crore to General Motors in December of last year to acquire the Talegaon factory.
HMIL intends to sell off 17.5% of its shares, or 142 million out of 812 million, in their Draft Red Herring Prospectus (DRHP). According to sources, the business plans to use this equity sale to raise about $3 billion (or about 25,000 crore). HMIL revealed that it has entered into a royalty deal with Hyundai Motor Corporation (HMC), its parent firm, whereby it will send HMC 3.5% of its quarterly sales revenue.
“By launching the appropriate EV models within each price segment, we seek to calibrate our EV strategy and plan our EV timelines in line with market demands in India,” HMIL stated. We are implementing a transition strategy; we began by introducing high-end, premium EVs and intend to move on to the mass markets as India’s EV market and ecosystem grow. In keeping with that, we plan to introduce four EV models in the future, the Creta EV being one of them in the final quarter of FY25.”
The Ioniq 5 and Kona Electric are the two electric vehicles that HMIL currently sells in India. But they’re both in the luxury category. Building a localised EV supply chain and obtaining local production capabilities for critical components like cells, battery packs, power electronics, and drivetrain are our main goals in order to maximise the price competitiveness of our EV models. In order to lower our import prices for battery packs, we leased a portion of the Chennai manufacturing plant to Mobis so they could assemble EV batteries and supply them to us,” the statement read.
Moreover, HMIL hopes to localise the EV supply chain by working with domestic and international suppliers of EV power electronics. In order to enable localised battery manufacture and supply in India, HMC and Kia Corporation announced earlier this year their strategic partnership with Exide Energy Solutions Limited.