Key Points:
- Hyundai and Kia aim for 4.2% sales growth in India in 2024, targeting 893,000 vehicle sales.
- Hyundai expands production bases in India, with plans for a new manufacturing plant in Talegaon.
- Kia continues to increase production, manufacturing over 300,000 units annually since 2022.
- Hyundai’s investment in India exceeds $4 billion, focusing on expanding EV business and upgrading manufacturing facilities.
Hyundai Motor Co. and Kia Corp., South Korea’s leading automakers, are setting their sights on a 4.2% increase in sales in India for 2024 after their record vehicle production output achieved in 2023. According to industry sources in Seoul, the two automakers plan to collectively sell 893,000 vehicles in India this year, compared to 856,667 units sold in 2023. This follows a 6.1% increase in sales volume recorded last year over the previous year.
Hyundai and Kia, subsidiaries of Hyundai Motor Group, the world’s third-largest carmaker, witnessed a surge in manufacturing output in India. In 2023, they collectively produced 1.08 million vehicles, marking a 3.8% increase from the previous year. Hyundai manufactured 765,000 vehicles, while Kia produced 319,878 cars.
Hyundai has been strategically expanding its production facilities in India, anticipating further growth in its robust economy. With India’s GDP growing consistently at over 6% for the past three years and its automobile market expanding by approximately 13% compared to 2021, the country presents significant opportunities for automakers.
Having established production bases in India since 1998, Hyundai manufactures about 600,000-700,000 vehicles annually for local sales and exports. The company’s investment in facility upgrades has increased the combined annual capacity of its two factories to 850,000 units.
In line with its expansion plans, Hyundai is set to commence operations at a new manufacturing plant in Talegaon, Maharashtra, with an annual capacity of 130,000 cars, acquired from General Motors Co. in 2023. This move is expected to boost Hyundai’s annual production volume in India to nearly 1 million automobiles.
Similarly, Kia, which entered the Indian market in 2019, produced over 300,000 units in 2022 and 2023. The company manufactures a range of popular models, including the Sonet, Seltos, Carens, and Carnival.
Hyundai has unveiled significant investment plans in India, totaling more than $4 billion, focusing on expanding manufacturing capacity and developing infrastructure for electric vehicles (EVs). With India emerging as one of the fastest-growing markets for EVs, Hyundai aims to lead the Indian EV market while maintaining its stronghold in the internal combustion engine car segment, particularly with SUV models.
