Hyundai's presence grows in India, shrinks in Russia

Seen are Hyundai Motor’s Exter SUVs. The company said Sunday that the compact SUV model was named the India Car of the Year 2024 by a jury consisting of automotive journalists there. Courtesy of Hyundai Motor Group

Hyundai Motor, which recently decided to sell its Russian plant due to the impact of the Russia-Ukraine war, is demonstrating successful market diversification into India and Southeast Asia, winning the India Car of the Year 2024 award, the company said Sunday.

Hyundai Motor said its new Exter compact SUV, which was launched in the Indian market this year, was selected for the highest award, the India Car of the Year 2024. The company added that its IONIQ 5 electric vehicle (EV) also won the Green Car Award 2024.

Voted by the jury, which consists of automotive journalists in India, this award is considered the country's most prestigious car-related award. “This award plays an important role in the new car purchase decisions of local consumers,” Hyundai Motor said.

"It's an honor to receive awards in two categories at the 2024 India Car of the Year," a company spokesperson said. "We won the awards thanks to the trust our customers have in Hyundai Motor, and we will continue efforts to improve customer satisfaction."

This achievement comes at a time when the company is moving its focus from Russia and concentrating on emerging markets like India and Southeast Asia, showing that Hyundai Motor's shifting strategy is working.

India has the third-largest vehicle market in the world, following China and the United States. Hyundai Motor recorded sales of more than 559,000 vehicles in India from January to November this year. The Exter, launched in July, has sold over 39,000 vehicles until November, becoming one of the most popular models there.

Hyundai’s shift to new overseas markets seems to have been largely influenced by a loss of influence in China, the world's largest vehicle market, in addition to the escalating losses from the prolonged Russia-Ukraine war.

In 2022, Hyundai Motor recorded an operating loss of 821.2 billion won ($632 million) in China and suffered a significant loss due to production stoppages caused by the war in Russia, where it once achieved the top sales. As a result, Hyundai Motor announced on Dec. 19 that its board decided to sell its factory in Russia to a local company. Negotiations for the sale are underway with the local Russian company, and the sale price is known to be around 10,000 rubles ($108).

Hyundai Motor is also establishing Southeast Asia as its major hub. In November, the company completed the Hyundai Motor Group Innovation Center in Singapore (HMGICS), the group's core electrification facility.

"Hyundai Motor Group plans to continue various collaborative strategies with Singapore to develop future mobility production and technological innovation solutions, and to build and develop a sustainable ecosystem," Hyundai Motor CEO Chang Jae-hoon said at the time.