Hyundai May Add Third Plant With 5 Lakh Unit Capacity

Hyundai is looking at a third manufacturing location in India as it prepares for more SUVs, EVs, hybrids and exports. Sanand in Gujarat and Chhatrapati Sambhaji Nagar in Maharashtra are reportedly being evaluated, although no site has been finalised yet.

Third Hyundai plant could add 5 lakh units

The proposed facility could eventually add around 5 lakh vehicles of annual capacity, with production expected to be built up in phases. The project could involve more than $2 billion of investment and become relevant around 2030, with expansion potentially taking five to seven years.

Hyundai has not confirmed the project or its final location. The company has said that material developments will be communicated through the appropriate official channels.

Hyundai Chennai and Talegaon capacity

Hyundai currently has manufacturing operations at Sriperumbudur near Chennai and Talegaon in Maharashtra. Together, these plants provide around 9.94 lakh units of annual capacity, with the planned figure rising to about 10.74 lakh units by 2028.

The reported third plant is therefore more about capacity planning for the end of the decade than an immediate production requirement. Hyundai is also planning 26 product introductions through FY2030, which could put more pressure on its existing facilities.

Sanand or Chhatrapati Sambhaji Nagar?

Both locations have established automotive ecosystems, but the final decision would depend on several practical factors:

• Land availability and state incentives
• Supplier ecosystem and infrastructure
• Logistics and port connectivity
• Long-term expansion potential

Sanand could offer an advantage for exports because of Gujarat's port connectivity, while Maharashtra already has a strong automotive supplier base and Hyundai's Talegaon operation. Neither location has been confirmed as the site of the proposed plant.

More Hyundai SUVs, EVs and hybrids ahead

Hyundai's future capacity requirement is closely linked to its product plans. SUVs already account for close to 70% of its domestic sales, while the company has outlined plans for five EVs and eight hybrid models as part of its India strategy.

Hyundai also expects India to become a larger export base, with around 30% of future India production potentially being exported. The company reportedly increased its 2026 production plan from around 7.7 lakh to approximately 8.2 lakh vehicles, showing why manufacturing capacity will remain an important issue as its portfolio expands.

Do you think Hyundai should choose Gujarat or Maharashtra for its third plant?