Hyundai Motor and Kia's India Production Volume Exceeds 1 Million Units for 2 Consecutive Years

Hyundai 760,000 · Kia 320,000... Record High
Increase in Local Investment at Largest Overseas Production Base

Hyundai Motor and Kia produced over 1.08 million complete vehicles in India last year. For the second consecutive year, they surpassed 1 million units, following 2022. This is the highest production volume among Hyundai Motor and Kia's overseas manufacturing bases.

According to data from the Korea Automobile Mobility Industry Association on the 22nd, Hyundai Motor produced 765,000 units and Kia produced 343,597 units in India last year. The combined total of 1,084,878 units marked the highest annual production volume ever recorded.

Hyundai Motor India Chennai Plant Overview [Photo by Hyundai Motor Group]

Previously, Hyundai Motor produced over 680,000 units in 2019 but dropped to the low 500,000s the following year due to the pandemic and other factors. Since then, production has steadily recovered, returning to pre-COVID-19 levels. Kia began operating its plant in 2019 and has continuously increased production, surpassing 300,000 units for the first time this year. Based on the combined figures of both companies, production exceeded 1 million units in both 2022 (1,048,597 units) and last year.

Hyundai Motor has been manufacturing complete vehicles in Chennai, southeastern India, since 1998, exporting to the local market as well as to the Middle East, Africa, and Latin America. The second plant was completed in 2008. Currently, it produces around 10 models, mainly small sport utility vehicles (SUVs) such as the Creta and Venue.

The combined production capacity of the two plants was 750,000 units as of 2022, and after equipment investments in the first half of last year, it increased to around 850,000 units. Additionally, the Talegaon plant, acquired from General Motors (GM) last year, has joined the production base. With an annual capacity of 130,000 units, the total production capacity of the three plants is expected to reach around 1 million units per year.

Kia India Anantapur Plant Production Line
[Photo by Hyundai Motor Group]

Kia produces up to 350,000 units annually at its inland Anantapur plant, manufacturing small SUVs such as the Sonet and Seltos, as well as multipurpose vehicles like the Carens and Carnival. The two companies sold approximately 860,000 vehicles in the Indian domestic market last year.

The largest overseas production base for Hyundai Motor and Kia used to be China but has now shifted to India. In 2016, the combined production in China exceeded 1.8 million units, but it has steadily declined since then, falling below 400,000 units last year. Since 2020, the year after Kia's plant resumed operations, India has become the largest overseas production base.

India is considered by the industry to be a high-growth market due to its status as the most populous country in the world and relatively low vehicle penetration. Hyundai Motor Group has recently announced investment plans totaling around 5 trillion won over the past year in three phases. Along with expanding local production facilities to support the spread of electric vehicles, the group has also decided to pursue hydrogen business locally. India recorded a steady economic growth rate in the 6% range from 2021 through last year, and its automobile market grew by about 13% compared to 2021.

This content was produced with the assistance of AI translation services.