Hyundai Motor India Limited (HMIL) – Making Chennai A Global Hub for Automobile Manufacturing

Made in Tamil Nadu’ cars are well accepted and some of these cars have won awards in the respective countries where we sell.


Hyundai-Kia Group is the 5th largest Automobile Manufacturers in the globe with plants across the globe – China, USA, Czechoslovakia, Russia, Turkey, apart from South Korea.

In 1995, Hyundai Motor Company (HMC) of South Korea proposed to establish a manufacturing facility in India and short-listed a few sites in India. Hyundai held extensive discussions with Guidance Bureau & Government of Tamil Nadu and did a detailed site evaluation study. Based on these, Hyundai chose Irrungattukottai near Chennai as their preferred destination for this project and the Government of Tamil Nadu also had offered a package of support to HMC.

Based on the discussions held with the State Government, HMC signed an MOU with Government of Tamil Nadu on 18.7.1996. An Indian subsidiary company “Hyundai Motor India Ltd (HMIL)” was incorporated which is a 100% subsidiary of HMC, South Korea and HMIL established its production facility with an annual manufacturing capacity of 1,20,000 cars which started commercial production in September1998. HMIL had gradually increased the capacity of this first car plant to 3.0 lakhs per annum (Phase I).

Subsequently in Feb 2008, HMIL commissioned the second car plant with an additional capacity of 3.30 lakhs per annum (Phase: II). The MoU for this second plant was signed between Govt of Tamil Nadu and HMIL on 22.1.2008.

The total installed capacity of Phase I and II is 6.30 lakhs making Hyundai the second largest manufacturer in India. HMIL has now two fully integrated state of art manufacturing Plants with advanced production and quality facilities at Irrungatukottai in Tamil Nadu.

Over a period of 17 years, HMIL commands 20% market share and is the 2nd largest player in the Indian Passenger Car industry and also the largest export of passenger cars from India.

HMIL is the manufacturing hub for small cars to the global market and exports to over 100 countries covering Europe, Africa, Middle East, Asia Pacific regions. So far, Hyundai has produced about 3.40 million cars in this Chennai plant. Chennai plant has become a competitive manufacturing hub for small cars. Hence, Hyundai has declared the Chennai plant as the “Global Hub for Small cars”.

HMIL currently employs over 8000 persons besides cresting indirect employment to over 90,000 persons. At present, HMIL plant Chennai plant has achieved a localisation of more than 90%. HMIL plant operates on “Just-in-Time” principle and about 430 vendors are locally supplying components to this Chennai Plant.

As a result of Hyundai, more than 200 South Korean companies have now established manufacturing bases in Chennai. Tamil Nadu has become the largest recipient of South Korean FDI.

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Sept 2015

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10 Reasons to Choose Tamil Nadu

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