'Hyundai Motor set to lead Indian auto market with flexible product mix'

Hyundai Motor India headquarters in Gurugram, a satellite city of Delhi in India / Courtesy of Hyundai Motor

By Lee Min-hyung

• Published Oct 25, 2024 8:30 AM KST
• Updated Oct 25, 2024 8:34 AM KST

GURUGRAM — Hyundai Motor plans to strengthen its presence in the Indian auto market, leveraging its unmatched product-mix flexibility that ranges from popular small SUVs to electric vehicles (EVs), the head of the firm’s India business said during an interview, Wednesday.

“We have in recent years seen an increase in the profitability of our business here, as the proportion of sales of lucrative SUVs increased in our product mix,” Hyundai Motor India CEO Kim Un-soo told reporters during the media interview.

The remarks were made as the Indian auto market is rapidly transitioning toward SUVs. According to data from Hyundai Motor India, the share of SUVs in the total vehicle market was approximately 25 percent in 2019, but this figure surged to over 46 percent in 2023.

The Indian subsidiary responded promptly to the market shift by strategically focusing on increasing sales of compact SUVs like the Creta and Exter. This was driven by the carmaker’s ability to flexibly adapt its product mix.

To enhance its presence in the market, Hyundai Motor recently made its much-anticipated debut on the Indian stock market. This marks the carmaker's first public offering in an overseas market, aimed at facilitating its expansion into other untapped regions, such as the Middle East and South Asia.

Hyundai Motor will be capable of manufacturing more than 1 million vehicles annually after the ongoing renovation of a factory in Pune is completed next year. The company also has plans to gradually widen its EV sales lineups here.

For now, Hyundai Motor accounts for 15 percent of the Indian automobile market share, the second largest following Maruti Suzuki.

The head of Hyundai's operations in the country said the company aims to transform it into an export hub for small vehicles as part of its mid- to long-term growth strategy. Demand for small cars is rising due to traffic conditions and the price sensitivity of customers.

“One of our biggest strategic differences compared to our rivals in India is that we will focus more on exports with vehicles produced here,” Lee said.

“Our vehicle lineups sold here match relatively well with demand in other regions, such as the Middle East and Africa, so we hope to make India our next export base for small vehicles.”

Kim also emphasized the importance of balancing local sales and exports to ensure sustainable growth in the global market.

“Hyundai Motor India decided to expand its manufacturing capacity, so we can stably respond to potential growth in exports. The strategy will also help us solidify our footing in the local market," he added.

Hyundai Motor India's headquarters

The two headquarters buildings of Hyundai Motor India, completed in March this year, are at the forefront of shaping the firm's regional business strategy.

The six-story buildings are established in Gurugram, a major satellite city of Delhi. More than 800 employees work at the innovative office buildings. A group of Hyundai’s key affiliates, such as Hyundai Mobis, Hyundai AutoEver and Hyundai Glovis, also opened their offices in the new regional headquarters buildings to generate more synergies in Hyundai Motor Group’s global business.

On the first floor, Hyundai Motor’s key strategic vehicles for the Indian market are on display. The venue is also used to hold diverse events in case the carmaker launches new models.

The buildings are capable of enduring a 7.5-magnitude earthquake and feature a future-oriented interior space.

“Employees with expertise in strategy-setting, sales and marketing are driving innovation at our new office buildings in India,” an executive at Hyundai Motor said. “The opening of the facilities displays our strong willingness to raise our market share and enhance brand value in the Indian market.”