Hyundai to invest ₹32,000 crore in India over next decade
What's the story
Hyundai Motor India has announced a massive ₹32,000 crore investment plan for the next 10 years.
The announcement was made by CEO Unsoo Kim at a press conference, related to the company's upcoming initial public offering (IPO).
A major chunk of this investment, ₹6,000 crore, will be invested in Hyundai's Pune facility.
Production expansion
Pune plant to boost production capacity by 30%
Hyundai's investment in its Pune unit comes as part of a strategic plan to increase the plant's production capacity by 30% by 2028.
The expansion will increase the current output from 824,000 units to nearly 1.1 million units annually.
The company expects that this major increase will provide ample room for growth in both domestic and export markets, possibly boosting its market share.
EV focus
Hyundai to enhance EV production, eyes SUV market
Along with this, Hyundai is also looking to strengthen its foothold in the electric vehicle (EV) space as part of its premiumization strategy.
The company has also noted that the SUV segment could be a growth area in India, considering its experience in the global market and the growth trend of this segment in the country.
Rural growth
Hyundai reports record-high rural penetration
Hyundai has claimed that its rural penetration in India has reached an all-time high.
Contrary to popular belief, the company said that rural customers are not only interested in small cars or hatchbacks.
Data from January to September showed that the contribution of SUVs to Hyundai's sales in rural areas, was at par with their contribution in urban regions.