Hyundai Motor India COO Tarun Garg stated that the introduction of four new models and their localisation would boost the company’s sales volumes and profit margins.
After going public, Hyundai Motor India (HMI) aims to expand its presence in the electric vehicle (EV) sector, targeting a 15% market share supported by new launches and a strong local sourcing strategy. HMI, India’s second largest car manufacturer, recently made its stock exchange debut, marking the country’s biggest initial public offering (IPO) to date, surpassing Life Insurance Corp’s IPO from two years ago.
Hyundai Motor India’s COO, Tarun Garg, expressed confidence in replicating their internal combustion engine (ICE) market share in the EV sector. He mentioned that the introduction of four new electric models, coupled with increased local production, will boost both sales and profitability. Garg emphasized that Hyundai’s strategy includes adapting to market demands and launching new EV models such as the much-anticipated Creta Electric.
This launch is expected to significantly enhance Hyundai’s market share, helping it compete in the mainstream EV segment. While the IONIQ 5 sets a high standard in its niche, the upcoming Creta Electric and other EV models aim to capture a broader market segment through extensive supply chain localisation, including battery production and charging infrastructure.
Currently, India’s EV market is led by Tata Motors, holding over 65% share, followed by MG Motors JSW MG Motor India and Mahindra. Despite Hyundai’s modest market presence, their ambitious targets suggest potential shifts in market dynamics soon.
HMI’s Managing Director, Unsoo Kim, acknowledged the challenges but remained optimistic about the growth of electric vehicles in India, which currently has about a 2% market penetration, contrasting with higher rates in the US, Korea, Europe, and China. Kim highlighted Hyundai’s commitment to developing an EV ecosystem in India through the launch of four EV models and enhancing local production capabilities.
Reflecting on their experience with the Kona, Hyundai’s initial foray into the Indian EV market in 2019, Garg noted the insights gained from consumer behaviour, which have informed their enhanced focus on DC charging infrastructure and battery production localization.
Hyundai is not only focusing on electric powertrains but also caters to a range of consumer preferences, including compressed natural gas (CNG) and flex-fuel vehicles, as the automotive landscape in India evolves. Kim and Garg reiterated Hyundai’s readiness to adapt to market demands, emphasizing the ongoing importance of CNG in entry-level vehicles and Hyundai’s comprehensive strategy towards full electrification.
