Key Points
- Hyundai’s Indian operations have seen increased profitability due to the rising SUV demand.
- The share of SUVs in India’s vehicle market surged from 25% in 2019 to 46% in 2023.
- Hyundai made its first public offering in India, marking a significant step toward global expansion.
- Hyundai plans to increase its manufacturing capacity in India to over 1 million vehicles annually by 2024.
Hyundai Motor is ramping up its efforts to solidify its position in India’s rapidly evolving automotive market, leveraging a diverse product range from small SUVs to electric vehicles (EVs). During an interview on Wednesday, Hyundai Motor India CEO Kim Un-soo highlighted the company’s increasing profitability, driven by the growing demand for lucrative SUVs in the country.
“In recent years, we have seen an increase in profitability due to the rising sales of SUVs,” Kim stated, as the Indian market shifts towards this vehicle category. According to Hyundai Motor India, SUVs accounted for 46% of the total vehicle market in 2023, a significant jump from 25% in 2019. Hyundai quickly adapted to this trend by focusing on compact SUV models such as the Creta and Exter, which have become popular among Indian consumers.
To further strengthen its presence, Hyundai recently debuted on the Indian stock market, marking its first public offering outside South Korea. This strategic step will help the company expand into new markets, including the Middle East and South Asia.
Hyundai Motor is also working to increase its manufacturing capacity in India, with a factory renovation in Pune slated for completion next year. Once finished, the facility can produce over 1 million vehicles annually, supporting both domestic sales and exports. Hyundai holds a 15% market share in India, making it the second-largest automaker after Maruti Suzuki.
As part of its long-term strategy, Hyundai aims to transform India into an export hub for small vehicles, which are in high demand due to traffic conditions and Indian consumers’ price-consciousness. CEO Kim emphasized the importance of balancing local sales with export growth to ensure sustainable expansion in global markets.
Hyundai’s new regional headquarters in Gurugram, which opened in March, is pivotal in shaping its strategy for India. The six-story buildings house over 800 employees and several key affiliates, such as Hyundai Mobis and Hyundai Glovis, fostering collaboration across the group’s global business.
With these initiatives, Hyundai Motor is well-positioned to capitalize on local and international markets, solidifying its foothold in one of the world’s most dynamic automotive sectors.
