Full vehicle assembly to follow; plant revamp part of ₹6,000 crore investment
Key Takeaways
• Hyundai Motor India has officially started passenger vehicle engine production at its Talegaon plant in Maharashtra, marking a key milestone in its local manufacturing expansion.
• The Talegaon plant, acquired from General Motors in 2023, has an annual capacity of 130,000 vehicles and 160,000 engines, with plans for further upgrades.
• Full vehicle production at the site is expected to follow shortly, with separate announcements to be made when assembly begins.
• This move is part of Hyundai’s ₹6,000 crore investment plan to enhance its manufacturing capabilities in India, a strategic response to growing demand in the world’s third-largest car market.
Engine Lines Go Live in Maharashtra
Hyundai Motor India Ltd. (HMIL) has officially begun production of passenger vehicle engines at its Talegaon facility near Pune, effective June 16, 2025. This development marks the company’s first major manufacturing activity at the site since acquiring the plant from General Motors in 2023. The start of vehicle assembly will be announced separately, as per HMIL’s statement to the stock exchanges.
The Talegaon plant, situated in the MIDC Phase-II Expansion area of Tehsil-Maval, was originally established by GM in 2008. Hyundai’s takeover included plans to upgrade the facility in phases and integrate it into its long-term manufacturing roadmap for India.
Strategic Acquisition and Local Expansion
The facility spans 300 acres and was designed with an annual capacity of 130,000 vehicles and 160,000 engines. With Hyundai’s phased investments now underway, the plant is set to complement its main production site in Sriperumbudur near Chennai. This move helps address capacity constraints and supports the company’s broader goal to serve both domestic and export markets more efficiently.
Hyundai’s acquisition of the Talegaon plant followed an earlier failed deal between GM and China’s Great Wall Motors, which withdrew its India plans in 2023. Hyundai stepped in soon after, and by January 2024 had closed the asset purchase agreement.
Market Outlook and Share Movement
Hyundai’s local capacity expansion comes at a time when India ranks as the world’s third-largest car market. The company has committed ₹6,000 crore toward local manufacturing upgrades, aimed at producing both internal combustion and electric models in the future. The company has not yet disclosed when full passenger vehicle production at Talegaon will begin, but the operationalization of engine lines signals that its transition plan is firmly underway.
