Hyundai Motor India FY27 capex: ₹7,500 cr, 2 SUVs

What Hyundai Motor India announced

Hyundai Motor India Ltd (HMIL) has laid out a new investment and product plan for FY27 as it looks to regain the number two position in India’s domestic passenger vehicle market. The company said it will invest around ₹7,500 crore in capital expenditure in FY27, which it described as its highest capex in recent years. The plan combines an SUV-heavy product cycle, an entry into a dedicated compact electric SUV space, and capacity expansion across its manufacturing base.

The announcement was made during HMIL’s Q4 FY26 post-earnings virtual call with the media and also reflected in its investor communication following Q4 results. Managing Director and CEO Tarun Garg said the growth ambition would be “fuelled by aggressive investments of around ₹7,500 crore in fiscal 2026-27.” The company’s near-term focus is clear: launch new models in high-demand SUV segments and ensure manufacturing capacity is ready for the next phase.

Two new nameplates planned for FY27

HMIL said it will introduce two all-new nameplates in FY27, both positioned in SUV categories where demand has stayed strong. Garg said the two launches are expected to “meaningfully boost” volumes and support the company’s next phase of growth. The first is a locally manufactured compact SUV EV, positioned as a mass-segment product and meant to mark Hyundai’s entry into a dedicated electric SUV segment.

The second launch will be a mid-size internal combustion engine (ICE) SUV aimed at strengthening Hyundai’s ICE portfolio. HMIL said both SUVs are positioned in “high-demand” segments, with the EV meant to broaden the portfolio into a new sub-segment and the ICE SUV meant to reinforce its presence in the mid-SUV category. The company has also indicated that the new models will be exported to overseas markets.

How the ₹7,500 crore capex will be used

HMIL said it plans to deploy about 45% to 50% of the ₹7,500 crore capex towards product-related investments, aligned with the two new launches. The remaining amount will go into capacity expansion and manufacturing upgrades at its Chennai and Pune plants. Separately, the company also indicated that around 30% of the earmarked capex will be used for manufacturing expansion work, including Phase II at the newly commissioned Pune facility and upgrades at its Sriperumbudur, Chennai facility.

In its public commentary, HMIL has framed the capex as both a product push and a manufacturing readiness plan. The company is linking product investments directly to volume targets for FY27, while capacity spending is aimed at supporting future growth and exports. The company also described the FY27 capex as the highest ever incurred by it in India.

Capacity expansion: Chennai and Pune in focus

HMIL said the two new SUVs will be manufactured at its Chennai plant, where installed capacity is around 824,000 units annually. The Pune plant, acquired from General Motors, is being scaled up in phases. HMIL said the Pune facility will be expanded by an additional 70,000 units after Phase II, taking Pune capacity to around 320,000 units.

In its disclosures, HMIL has also shared interim steps for the Pune ramp-up. It expects the Pune plant to reach 250,000 units by 2028, before scaling further to around 320,000 units after Phase II. Across both sites, HMIL said its combined installed capacity is currently 994,000 units annually, consisting of 824,000 units in Chennai and 170,000 units in Pune. Through phased development, the company has indicated total installed capacity rising to about 1.144 million units by 2030, and has also described this as taking overall capacity to more than 1.1 million units by 2030.

FY27 sales and export growth guidance

HMIL said it expects domestic sales volumes to grow in the 8% to 10% range in FY27. It also guided for a similar 8% to 10% growth in export volumes, while noting geopolitical uncertainties. The company has linked the growth outlook to new launches, capacity expansion, and what it called improving demand sentiment.

HMIL also flagged early momentum in the new fiscal year, stating that April domestic volumes grew 17% year-on-year. On exports, it has outlined a FY27 export growth target of 8% to 10%, compared with FY26 export growth of 16%, and said it plans to strengthen exports through market diversification.

Why SUVs and EV entry are central to the plan

HMIL’s product strategy is being anchored around SUVs, which the company said accounted for 68% of its domestic sales in FY26. It highlighted models such as the CRETA, EXTER and VENUE as volume drivers during the year. Against this backdrop, two new SUV nameplates keep Hyundai’s pipeline aligned with the segments it says are already central to its India business.

On electrification, HMIL’s FY27 compact SUV EV is positioned as a dedicated entry into a mass segment electric SUV category. The company has also indicated that its EV push is gathering pace following the launch of the Creta Electric, while it has simultaneously expanded its CNG portfolio amid demand for lower running-cost options.

Competitive context behind the “second spot” target

HMIL has framed FY27 as a turnaround effort after losing the number two position in the domestic passenger vehicle market. It is also operating in a utility vehicle market where it said competition has intensified, with rival automakers gaining ground. Within this setting, HMIL’s stated approach is to combine new SUV launches, EV entry, and capacity expansion to defend and rebuild market share.

The company has not tied the goal to a specific date beyond FY27 execution plans, but its messaging makes clear that the ranking is a core performance marker. Management’s comments also suggest that product cadence and manufacturing scale are expected to be decisive factors as competition intensifies across SUV sub-segments.

Longer-term roadmap also outlines FY30 targets

Beyond the FY27 capex plan, Hyundai has also outlined a broader India roadmap through FY30 that includes an investment plan of ₹45,000 crore. Under this roadmap, HMIL has indicated 26 product launches by FY2030, including seven new nameplates. Hyundai has also stated it aims to roll out India’s first locally designed, developed and manufactured dedicated electric SUV by 2027 under this roadmap.

The company has also said it targets up to 30% export contribution and aims to increase revenue by 1.5 times and cross ₹100,000 crore by FY2030. Separately, it has said Hyundai Capital will enter India by Q2 2026 in a phased manner, and that Genesis is planned for India by 2027 through local assembly.

Key facts at a glance

Conclusion

HMIL’s FY27 plan combines its biggest stated India capex cycle in recent years with two SUV launches, including a locally manufactured compact electric SUV. The company has positioned the investment as a direct lever to lift volumes in domestic and export markets, with guidance of 8% to 10% growth on both fronts and early momentum visible in April’s 17% year-on-year domestic volume growth.

Execution will be tracked through timelines for the two new nameplates and the phased capacity build-out in Pune, alongside upgrades in Chennai. Investors are also likely to watch how the FY27 plan ties into Hyundai’s longer-term roadmap through FY30, which includes ₹45,000 crore in planned investment, 26 launches by FY2030, and a targeted revenue milestone of ₹100,000 crore by FY2030.