Hyundai Motor Group’s (HMG) Executive Chair, Euisun Chung, visited India to review the company’s strategy, laying the foundation for future growth and supporting its leadership in the Indian market. He visited the Hyundai Motor India Engineering (HMIE) located in Hyderabad, the brand’s R&D hub in India, and the automobile plants in Chennai on August 7 and discussed mid- to long-term growth strategy with local employees.
On the 8th, Chung discussed with the Chief Minister of Tamil Nadu M K Stalin strategies for developing the Indian automotive market and avenues of collaboration for Hyundai Group's operations in India.
His visit included a review of the strategic importance of India as a future mobility hub. With this in mind, preparations for a new group leadership position in EVs were also discussed, given that the country will be a competitive EV battleground in the coming years.
A press release from HMG noted that HMIE plays an important role in increasing sales in the Indian market and works closely with the Hyundai-Kia Namyang R&D centre in Korea to develop vehicles tailored for the Indian market.
In addition to strengthening local R&D capabilities, HMIE will expand its role as a hub for future mobility research, including electrification, autonomous driving, and the development of voice recognition technology in local Indian languages. To this end, construction of a new test facility began last year.
Chung stressed that to establish a position as the first mover, it is crucial to deliver products that exceed customer expectations in a timely manner and that HMIE should be a driving force for the Group’s growth in the Indian market. Notably, he considered reorganising the automotive value chain in the works, focusing on India.
By systematically analysing the Indian market and its customers, Hyundai Motor aims to grow quantitatively by strengthening its leadership in SUVs, expanding its EV line-up, and establishing itself as the most trusted brand in India through customer-centric activities and social contributions.
The Group has also undertaken various CSV activities in forest conservation, bridging the education gap and road safety. In addition, the Group will build an optimal production system to efficiently support vehicle production in the mid-to-long term and create a sustainable EV ecosystem to drive growth as a leading electrification brand. The growth of the Indian car market is expected to be driven by SUVs and EVs.
The release added that the company expects SUVs to account for 48% of the country’s expected five million vehicle unit sales by 2030, while EVs are expected to reach one million units.
To this end, Hyundai Motor will continue to introduce SUV models specialised for the Indian market, including the compact SUV Exter, which was launched in July. Hyundai Motor will introduce five EV models by 2032 and expand the number of EV charging stations to 439 by 2027 by leveraging the strength of the company’s sales network.
Meanwhile, Kia Corporation plans to target the Indian EV market based on its premium image and technological competitiveness, building on SUVs' popularity, such as the Seltos and Sonet.
First, Kia will produce small EVs optimised for the local market from 2025 and gradually offer various EV models and Purpose Built Vehicles (PBVs). The company will also develop an EV charging infrastructure. Through its ‘Kia 2.0 Strategy,’ the company aims to increase its market share in India from 6.7% in the first half of this year to 10% in the coming years. Kia plans to expand its vehicle range and more than double its sales network from the current 300.
Following last year’s sales of 807,067 units, the company has sold 502,821 units throughout July this year, up 8.8% year over year. This year’s sales target is 873,000 units, 8.2% more than last year.
EV sales, including Completely Knocked Down (CKD) assembled units, nearly doubled from a year earlier to 1,181 units. In the future, Hyundai and Kia plan to mass-produce EV volume models at Indian plants to increase EV sales in the country significantly.
Production at the Indian plants has also increased. Cumulative production through July this year was 630,230 units, up 8.7% from 580,049 units last year. Hyundai Motor has expanded its production capacity accordingly. A new paint shop and additional investments have enabled the company to produce 824,000 units, an increase of 54,000 units from 770,000 units.
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