NEW DELHI: Solid sales in markets like India have powered Hyundai Motor’s sales growth in markets outside Korea which were up by 1.9 per cent to 846,800 units, with the US also contributing in the boost. The Korean automaker sold 1,006,767 units worldwide in the January–March period, a 1.5 per cent decrease from a year earlier, and plans to enhance profitability through various measures despite global uncertainties, fluctuations in interest rates, and geopolitical issues and amidst a dip in the company’s operating profit by 2.3 per cent year-over-year during the January–March period, to KRW 3.56 trillion with an operating profit margin of 8.7 per cent. Its net profit (including non-controlling interest) was down 1.3 per cent to KRW 3.38 trillion.
Celebrating its 30th anniversary in 2026, Hyundai Motor India is developing its 2030 strategy under the slogan ‘Innovator in Mobility and Beyond’ amid the growing strategic importance of India signalled by the recent visit of Hyundai Motor Group Executive Chair Euisun Chung to the world’s fifth largest economy and top three automobile markets. The Hyundai chairman is looking at mid-to long-term mobility commitments aimed at solidifying Hyundai’s position as a leading mobility provider in India while exploring various business opportunities in the rapidly evolving Indian market.
The vision was shared by Chung at a town hall meeting in Hyundai Motor India headquarters, the first time that such an event was held outside of Korea. On the anvil are a major manufacturing advance in the Indian region with the establishment of an annual production of 1.5 million vehicle units for Hyundai Motor India and Kia India combined. Key to this is the laying of groundwork to expand production. Hyundai Motor India will start operating its Pune plant in the second half of next year. Located in Maharashtra, western India, the production facility was acquired from GM last year.
“Hyundai Motor India has been pivotal in driving the growth of the Hyundai Motor Group, having navigated through numerous challenges including the COVID19 pandemic, global economic crises, and supply chain disruptions due to semiconductor shortages. We take pride in consistently securing the second-largest market share in this vibrant market and will continue to elevate Hyundai as a premium brand,” Chung said on the importance of the Indian region. “India is among the fastest-growing economies globally, and as this growth continues the strategic importance of Hyundai Motor India will only increase. By leveraging our strong reputation and competitive quality in India, we aim to expand exports to neighbouring countries, making India the global export hub to boost our regional market competitiveness.”
Hyundai Motor is currently making improvements to the facility to create a production hub capable of building more than 200,000 units annually, using smart manufacturing technology and systems. With the addition of the Chennai plant’s production capacity of 824,000 units, Hyundai Motor will have an annual production capacity of over one million units when combined with the Pune plant. Kia India’s yearly production capacity will also be expanded to 431,000 units within the first half of this year. Combined together, Hyundai Motor Group will have the ability to produce approximately 1.5 million units annually in India.
The company is also charting an electrification strategy to strengthen leadership in the Indian EV market by expanding EV local production and lineups as well as creating EV ecosystems, according to Chung. The company plans sale of Hyundai hybrids and the introduction of new IONIQ models, with India emerging as destination of strategic importance. It will also strengthen its SUV sales leadership and promote social responsibility activities in consideration of Indian culture. Kia India, which has also quickly grown into a major Indian automobile brand, is also promoting quantitative and qualitative growth through its ‘Kia 2.0’ strategy.
This comes at a time when Hyundai Motor India Foundation (HMIF)’s green initiative EcoGram, in the form of a Biogas plant and material recovery facility, has helped in saving 1.4 million kg of CO2 emissions. Operational since October 2022, the facility has contributed to the environment by processing 4,04,000 kg waste collected from over 2000 households, as well as the HMIL headquarters. EcoGram is setup at a cost of Rs. 2.13 crore. The facility has an annual electricity generation capacity of 76 megawatt, and is currently self-sustaining with plans of supplying electricity to the grid in the near future.
Hyundai Motor India plans to unveil its first locally produced EV in India next year and proactively respond to the growth of the Indian EV market. Starting with the mass production of its first electric SUV model at the Chennai plant at the end of 2024, the company plans to further produce five EV models by 2030. Hyundai Motor India will also utilize its sales network hubs, expanding the number of EV charging stations to 485 by 2030. Kia India will also start production of its local EV model in 2025 and plans to further expand its EV models. The company will also focus on building EV charging infrastructure.