Kanchipuram: Smoke billows out as fire breaks out in the scrap yard at the Hyundai Mobis factory at the Sriperumbudur area, in Kanchipuram on Sunday. (ANI Video Grab) | Photo Credit: ANI

A fire at Mobis India Ltd’s manufacturing facility in Irungattukottai, near Chennai on Sunday is expected to cause a temporary disruption to production at Hyundai Motor India’s nearby Sriperumbudur plant, according to the automaker. A source said the exact duration of the disruption is not known.

In a statement, Hyundai Motor India said the affected Mobis facility supplies audio systems and certain other automotive components used in its vehicles. While the company did not disclose the extent of the damage or the financial impact, it acknowledged that the incident could affect production schedules in the short term.

“Alternative sourcing and supply continuity measures are being actively explored to minimize the operational impact,” Hyundai said, adding that there is adequate vehicle inventory available across its dealer network to meet current customer demand.

No fatalities were reported in the incident.

Hyundai said teams from both companies are working closely to assess the situation and determine the extent of damage at the Mobis plant.

According to sources, the fire is suspected to have originated from the soldering line in the assembly section before spreading rapidly through the facility. Multiple fire tenders were pressed into service to contain the blaze, with firefighting operations continuing until midnight.

The incident has raised concerns over supply chain disruptions for Hyundai, given Mobis India’s role as a key supplier of automotive components to the carmaker’s manufacturing operations in Tamil Nadu. The impact on production will depend on the extent of damage to the facility and the speed at which alternative supply arrangements can be put in place.

Industry observers noted that modern automobile manufacturing operates on lean inventory and just-in-time supply systems, making uninterrupted component supplies critical for maintaining production schedules. Hyundai, however, indicated that it is taking proactive steps to ensure continuity and limit disruption to vehicle output.

Published on June 1, 2026