Leading Passenger Vehicle Manufacturer Expects Full Production Recovery By June 22 After Supplier Fire

Indian equity benchmarks traded marginally higher on Wednesday, with the benchmark Nifty 50 index gaining 5.95 points, or 0.03 per cent, to 23,248.05. Amid the broader market movement, Hyundai Motors' share price traded at Rs 1,892.40, down 0.33 per cent from the previous close.

Hyundai Motor Production Recovery Plan

Hyundai Motor India Limited has announced that it expects full normalisation of production across its facilities by June 22, 2026, following a fire incident at supplier Mobis India Limited, which temporarily disrupted operations at one of its manufacturing plants.

According to the company, the impact has been largely restricted to Chennai Plant 1, while operations at Chennai Plant 2 and the Pune plant have remained mostly unaffected and continue to operate as usual. Hyundai expects Chennai Plant 1 to regain its production pace by June 15, 2026.

Measures To Minimise Disruption

To address the supply disruption, the company has initiated multiple mitigation measures, including sourcing automotive components from alternate locations. Hyundai stated that it is taking all necessary steps to restore normal production levels and maintain continuity in vehicle supplies.

The company is currently assessing the overall operational impact of the incident. However, it expects that most of the production loss resulting from the disruption will be recovered during the next quarter.

No Major Impact On Retail Sales

Hyundai Motor India said it does not expect any significant impact on its retail sales performance in June 2026, supported by adequate inventory levels available across its dealer network.

The company added that it continues to actively manage the situation while working to minimise operational disruptions arising from the supplier-side incident.

Hyundai Motor Shareholding Pattern

According to the latest shareholding data, Foreign Institutional Investors (FIIs) reduced their stake in the company to 5.43 per cent in March 2026 from 6.43 per cent in December 2025. Meanwhile, Domestic Institutional Investors (DIIs) increased their holding to 9.71 per cent from 8.59 per cent during the same period.

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Hyundai Motor Stock Performance

Over the past one year, Hyundai Motor India has delivered a return of -2.67 per cent, outperforming the BSE 500, which declined 4.42 per cent during the same period. The stock's 52-week high stands at Rs 2,807.35, while the 52-week low is Rs 1,694.70.

About Hyundai Motor

Hyundai Motor India Limited is one of India's leading passenger vehicle manufacturers and is currently in its 30th year of operations in the country. The company offers a portfolio of 14 vehicle models and has an annual manufacturing capacity of 8,24,000 units. It operates two integrated manufacturing facilities near Chennai and is redeveloping a third manufacturing plant at Talegaon, Pune.

The company has a nationwide network of 1,419 sales outlets and 1,606 service touchpoints, while exporting vehicles to 61 countries. During FY25, domestic operations contributed 78.04 per cent of revenue, while exports accounted for 21.96 per cent.

What are your thoughts on Hyundai's production recovery timeline following the supplier fire incident? Share your views in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.