How a fire at a supplier unit in Tamil Nadu hit Hyundai Motor India production
Hyundai said it is working closely with Mobis to assess the situation and extent of damage to the Mobis facility, says Hyundai Motor India.
- Jun 1, 2026,
- Updated Jun 1, 2026 2:44 PM IST
South Korean carmaker Hyundai Motor India Ltd on June 1 said a fire incident at one of its parts suppliers will temporarily disrupt the company's car production.
Hyundai’s supplier, Mobis India Ltd, reported a fire incident at its manufacturing facility in Irrungattukottai, located in the Kancheepuram district of Tamil Nadu.
This facility of Mobis supplies audio components and a few other automotive parts to the South Korean carmaker.
Hyundai said it is working closely with Mobis to assess the situation and extent of damage to the Mobis facility.
“This incident will result in temporary disruption to the company's production,” Hyundai said in a regulatory filing.
However, alternative sourcing and supply continuity measures are being actively explored to minimise the operational impact, the company said, adding that there is sufficient vehicle inventory in its dealer network to take care of the customer demand.
In a separate development, Hyundai released its May 2026 sales figures.
Hyundai Motor India reported domestic sales of 47,837 units in May 2026, registering 9.1% YoY growth. With exports of 13,300 units, total monthly sales stood at 61,137 units, marking 4.1% YoY growth in May 2026.
“In the first two months (April and May) of FY27, HMIL witnessed domestic sales rise by 13% to 99,739 units, compared to 88,235 units in the same period of FY26,” said Tarun Garg, managing director and CEO, Hyundai Motor India.
Hyundai is raising prices of its vehicles by up to ₹12,800, effective June 1, 2026, citing higher input costs. While it had previously announced a price revision in a letter dated April 8, 2026, the implementation has now been deferred to June 1, 2026, in light of prevailing market conditions and the need to balance customer interests.
"The revised prices will come into effect from June 1, 2026," Hyundai said, adding that the increase will be capped at ₹12,800 and will differ across models and variants.
Hyundai entered the market in 1996 with the launch of the iconic Santro hatchback. For much of its journey, the company held firmly to the No. 2 position behind Maruti Suzuki, which has long dominated the country's passenger vehicle market.
However, Hyundai's standing has weakened in recent years. Its market share has slipped from around 17% in FY21 to nearly 12% in FY26, pushing it down to fourth place behind Mahindra & Mahindra and Tata Motors in the passenger vehicle segment.
Now, the automaker is aiming to reverse this trend. Hyundai has outlined plans to invest ₹45,000 crore in India between FY26 and FY30.
South Korean carmaker Hyundai Motor India Ltd on June 1 said a fire incident at one of its parts suppliers will temporarily disrupt the company's car production.
Hyundai’s supplier, Mobis India Ltd, reported a fire incident at its manufacturing facility in Irrungattukottai, located in the Kancheepuram district of Tamil Nadu.
This facility of Mobis supplies audio components and a few other automotive parts to the South Korean carmaker.
Hyundai said it is working closely with Mobis to assess the situation and extent of damage to the Mobis facility.
“This incident will result in temporary disruption to the company's production,” Hyundai said in a regulatory filing.
However, alternative sourcing and supply continuity measures are being actively explored to minimise the operational impact, the company said, adding that there is sufficient vehicle inventory in its dealer network to take care of the customer demand.
In a separate development, Hyundai released its May 2026 sales figures.
Hyundai Motor India reported domestic sales of 47,837 units in May 2026, registering 9.1% YoY growth. With exports of 13,300 units, total monthly sales stood at 61,137 units, marking 4.1% YoY growth in May 2026.
“In the first two months (April and May) of FY27, HMIL witnessed domestic sales rise by 13% to 99,739 units, compared to 88,235 units in the same period of FY26,” said Tarun Garg, managing director and CEO, Hyundai Motor India.
Hyundai is raising prices of its vehicles by up to ₹12,800, effective June 1, 2026, citing higher input costs. While it had previously announced a price revision in a letter dated April 8, 2026, the implementation has now been deferred to June 1, 2026, in light of prevailing market conditions and the need to balance customer interests.
"The revised prices will come into effect from June 1, 2026," Hyundai said, adding that the increase will be capped at ₹12,800 and will differ across models and variants.
Hyundai entered the market in 1996 with the launch of the iconic Santro hatchback. For much of its journey, the company held firmly to the No. 2 position behind Maruti Suzuki, which has long dominated the country's passenger vehicle market.
However, Hyundai's standing has weakened in recent years. Its market share has slipped from around 17% in FY21 to nearly 12% in FY26, pushing it down to fourth place behind Mahindra & Mahindra and Tata Motors in the passenger vehicle segment.
Now, the automaker is aiming to reverse this trend. Hyundai has outlined plans to invest ₹45,000 crore in India between FY26 and FY30.