Hyundai Motor India Approves ₹694 Crore Investment for Tooling Centre

Hyundai Motor India Ltd. has approved an investment of ₹694 crore to set up a local tooling centre. According to a stock exchange filing on Monday, the facility will focus on the manufacturing of stamping tools and panel production for vehicles. The tooling centre is expected to support operations at the company’s existing Chennai plant and the upcoming manufacturing facility in Talegaon, near Pune.

As of 10:30 AM on March 25, shares of Hyundai Motor India were trading at ₹1,733.30, down ₹25.70 or 1.46% for the day, but up 8.37% over the past five days and down 4.74% over the last six months.

Talegaon Plant to Expand Production 

The Talegaon plant is scheduled to begin operations later in 2025. Once functional, Hyundai’s total annual production capacity in India will increase from 900,000 units to 1.1 million units. The local tooling facility is for stabilising the supply chain and improving production timelines by enabling the in-house development of vehicle components.

Price Hike Announced for April 2025

Last week, Hyundai announced a price hike of up to 3%, effective April 1, 2025. The price increase will vary across different models and variants. The company cited rising input costs, commodity prices, and operational expenses as key reasons for the adjustment. This will be the second price hike of the year. In January 2025, prices were raised by up to ₹25,000 across various models.

Q3 Financial Results

For the quarter ended December 31, 2024, Hyundai Motor India reported a 19% year-on-year decline in consolidated net profit at ₹1,124 crore, compared to ₹1,425 crore in the same quarter of the previous year. Consolidated revenue from operations stood at ₹16,648 crore, down from ₹16,875 crore in the corresponding period last year.

Sales and Exports

In Q3 FY25, Hyundai sold a total of 186,408 passenger vehicles. Of these, 146,022 units were sold in the domestic market. Export volumes for the quarter stood at 40,386 units. The company recorded a CNG penetration of 15%, up from 12% in the previous year. Rural penetration increased to 21.2%, from 19.7% year-on-year.

Conclusion

The tooling centre adds to Hyundai’s ongoing production plans in India, with a focus on increasing local output and meeting demand. It comes at a time when the company is adjusting prices and production targets while managing shifts in sales and profit.

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