Hyundai To Modernise Chennai Plant With Rs15,000 mn Investment

23 Jul 2026 CW Team

Hyundai has proposed an investment of Rs15,000 mn to comprehensively modernise its manufacturing facility at Irungattukottai in Sriperumbudur, Tamil Nadu. The project will upgrade manufacturing systems and equipment, enhance infrastructure and improve overall operational efficiency while maintaining the existing annual production capacity of around 0.85 mn vehicles. Work will focus on integrating advanced production technologies and improving operational flexibility across the plant.

The plan includes adding 0.181 mn square metres of built-up area to accommodate new facilities and machinery. Material handling, warehousing and internal logistics will be improved to ensure seamless operations and support higher automation levels. The project is expected to generate around 155 new jobs on completion, contributing to the wider vendor and logistics ecosystem in the region.

Key improvements will cover next-generation automation in manufacturing and assembly systems, upgrades to car body shops, paint shops and final assembly lines, and enhanced digital manufacturing solutions. The investment will be directed towards modernising production equipment and support facilities to boost productivity and vehicle quality. Infrastructure enhancements will be made to keep current platforms relevant and to enable future vehicle platforms, including next generation internal combustion engine models and possible electrified models.

Irungattukottai is one of Hyundai’s largest manufacturing hubs in India, spread over more than 538 acres and serving domestic and overseas markets. The facility exports to over 88 countries and supports a substantial automotive ecosystem that employs more than 18,700 direct workers and thousands more through suppliers and logistics partners. Hyundai has been in India since 1996 and has invested Rs300,000 mn in Tamil Nadu, and the modernisation is intended to strengthen localisation and bolster the region as a production and export hub.

Infrastructure Transport

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