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Hyundai Motor India Ltd said that it has begun engine manufacturing for its passenger vehicles at its Talegaon plant in Maharashtra, marking a significant step forward in its expansion strategy.

According to a regulatory filing made on Monday, the production of passenger vehicle engines began on June 16 at the facility, which is located in the MIDC Phase-II Expansion area of Tehsil Maval, Pune district, reported The Economic Times. However, the company noted that the production of passenger vehicles at this location would start at a later date, with further details to be shared in due course.

On Monday, shares of Hyundai Motor India Ltd closed at Rs 1,937.50, registering a marginal decline of Rs 3.90 or 0.20 per cent compared to the previous trading session.

Talegaon Facility: A Key Part of Hyundai’s Growth Blueprint

The Talegaon plant, which Hyundai acquired from General Motors, plays a central role in the company’s efforts to expand its domestic manufacturing footprint. Full-fledged operations at this facility are scheduled to commence in the fourth quarter of 2025, as announced earlier by the automaker. The site comes with a production capacity capable of assembling 130,000 vehicles and manufacturing 160,000 engines annually.

Hyundai’s commitment to developing this facility was further solidified in January 2024, when the company signed a Memorandum of Understanding (MoU) with the Maharashtra government at the World Economic Forum in Davos. Under this agreement, Hyundai pledged to invest Rs 6,000 crore towards various projects in the state, with a significant portion allocated to the Talegaon plant.

Building on a Strong Legacy in India

The recent developments align with Hyundai’s long-term vision for India, a market where it has built a strong presence since its entry in 1996. Celebrating its 29th foundation day on May 6, the company revealed that it has sold a cumulative 1.27 crore vehicles in India to date. As part of its continued investment, Hyundai has also committed Rs 1,500 crore towards upgrading its Chennai plant, further boosting its manufacturing capabilities.

The Talegaon site itself has a rich history. Initially established in 2008 by General Motors, the facility primarily focused on export production. Even after GM exited the Indian market in 2017, operations at the plant continued for a few more years before coming to a halt in late 2020. In addition to manufacturing infrastructure, the site also houses a logistics distribution centre, a training centre, a project management office, and administrative units, all of which will support Hyundai’s expanding operations.