Hyundai Motor India Pune Plant Utilisation Crosses 90% as New Venue Production Shifts

Hyundai Motor India has confirmed that its new Pune manufacturing plant is operating at more than 90% utilisation following the transfer of New Venue production to the facility, representing a major step in the company’s domestic capacity expansion strategy. The accelerated ramp-up at the Pune manufacturing plant has temporarily moderated capacity utilisation at the Chennai plant, resulting in a marginal rise in processing costs at that location. Management noted that the commissioning impact of the new plant may translate into an estimated 100 basis point margin effect for nearly one year, until production volumes at both facilities scale sufficiently to optimise fixed-cost absorption.

Hyundai Motor India Accelerates Pune Plant Utilisation

The swift production scale-up at the Pune manufacturing plant underlines Hyundai Motor India’s emphasis on operational efficiency, network optimisation, and balanced capacity deployment across its manufacturing footprint. With New Venue production now fully aligned with the Pune facility, output scheduling has been recalibrated to maximise throughput while ensuring smoother supply-chain coordination.

Shift-Based Operations and Capacity Realignment

The Pune plant is presently operating in two shifts at utilisation levels exceeding 90%, indicating robust production momentum. This strategic reallocation has, however, temporarily reduced utilisation at the Chennai plant, increasing per-unit processing costs due to partial fixed-overhead absorption. Management estimates the margin impact at approximately 100 basis points, with normalisation expected within about a year as output volumes at both locations stabilise and cost structures rebalance.

Process Benchmarking and Localisation Gains

Hyundai Motor India is leveraging the Pune ramp-up phase to benchmark production systems, refine operational workflows, and standardise best practices across its manufacturing network. Insights and efficiency enhancements derived from the Pune facility are planned to be systematically implemented at the Chennai plant to elevate productivity and harmonise operational standards.

Higher Localisation Levels Strengthen Cost Structure

In parallel with process optimisation, Hyundai has increased localisation levels to around 84%, compared to 82% in the previous year. Enhanced localisation within automotive manufacturing in India reduces exposure to import dependencies, cushions currency volatility risks, and reinforces long-term margin resilience. This structured approach aligns with Hyundai Motor India’s broader objective of strengthening cost competitiveness while scaling aggregate production volumes.

Five-Year Expansion Plan and Capacity Outlook

The Pune manufacturing plant remains integral to Hyundai Motor India’s five-year growth trajectory. Management reiterated that the facility is central to addressing rising demand and expanding passenger vehicle capacity in India.
A second development phase, targeted around 2028, is expected to raise the combined installed production capacity of the Pune and Chennai plants to approximately 1.1 million units. This phased capacity enhancement is structured to:

• Strengthen Hyundai’s manufacturing footprint in India

• Support new product introductions and incremental volume expansion

• Improve fixed-cost absorption through higher consolidated output

With the Pune plant approaching optimal utilisation and localisation levels steadily improving, Hyundai Motor India is reinforcing its manufacturing ecosystem to support sustained scale, operational robustness, and stronger margin performance over the medium term.