Hyundai Motor India lines up Rs 7,500 cr capex for FY27; eyes to reclaim no 2 spot

Hyundai Motor India Ltd on Friday said it has lined up Rs 7,500 crore capex for FY27 and slated two new models, including a mass segment electric SUV, for launch this year, as it seeks to regain the number two position in the domestic passenger vehicle market.

Hyundai Motor India Ltd on Friday said it has lined up Rs 7,500 crore capex for FY27 and slated two new models, including a mass segment electric SUV, for launch this year, as it seeks to regain the number two position in the domestic passenger vehicle market. The company expects domestic sales to grow by 8-10 per cent in FY27, along with a similar volume growth for exports, amid geopolitical uncertainties, Hyundai Motor India Ltd (HMIL) Managing Director & CEO Tarun Garg told reporters in an earnings call. With commodity prices going up, HMIL will take a call this month to increase vehicle prices to partially offset the pressure, he added. ''Our growth ambition plans will be fuelled by aggressive investments of around Rs 7,500 crore in fiscal 2026-27, marking the highest capex in recent years,'' he said. The company plans to utilise about 45-50 per cent of the planned capex on new products and the rest in capacity expansion of its Chennai and Pune plants. To support future growth aspirations, he said the Pune plant capacity will be expanded by another 70,000 units post Phase-II expansion, taking HMIL's ''overall capacity to 1.14 million units by 2030''. On new products, Garg said, ''During this financial year, we shall be introducing two completely new name plates...both these launches are expected to meaningfully boost our volumes and act as powerful catalysts for our next phase of growth''. Of these two new launches, he said, ''One will mark the debut of our new localised dedicated EV in the compact SUV space, accelerating our transition towards electrification and strengthening our future-ready portfolio''. The other one will further expand the company's presence in the ICE SUV segment, Garg added. ''Notably, both these SUVs are positioned in high-demand segments, aimed at broadening our portfolio and deepening our penetration. The upcoming EV will mark our entry into a new segment, while the ICE SUV will further reinforce our position in the mid-SUV category,'' he said. Aided by these product actions and other initiatives, Garg said, ''We remain confident of delivering domestic volume growth of 8-10 per cent in FY27''. When asked if HMIL was looking to regain the position of being the second-largest PV maker in India, which it held for a long time before losing to Mahindra & Mahindra and slipping to fourth behind Tata Motors in FY26, Garg said the ambition is to get back to its erstwhile position. ''We have every intention to come back to the number two position,'' Garg said, adding that sharing a timeline for getting to the position would depend on other factors, including competition. ''We would not like to make any claim as such, but we are very passionate about our position, and we will get it back sooner than later,'' Garg asserted. The company's enhanced plant capacity and flexible operations position it to swiftly respond to any further growth opportunities, should they arise during the year, he added. For exports, Garg said, ''We remain watchful of geopolitical uncertainties; however, we are confident of registering 8-10 per cent volume growth, reinforcing our position as the hub for emerging markets''.