"Our upcoming four models and their localization will help us drive volumes and margins," said Hyundai Motor India COO, Tarun Garg.
22 Oct 2024 | 8023 Views | By Prerna Lidhoo and Ketan Thakkar
Post listing, Hyundai Motor India (HMI) is looking to penetrate the EV segment, as it eyes a 15% market share in the near future, backed by a series of upcoming launches and a robust localisation strategy.
India’s second largest car maker Hyundai Motor India debutedon the stock exchanges ...
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Post listing, Hyundai Motor India (HMI) is looking to penetrate the EV segment, as it eyes a 15% market share in the near future, backed by a series of upcoming launches and a robust localisation strategy.
India’s second largest car maker Hyundai Motor India debuted on the stock exchanges on Tuesday. This IPO has become the largest in the country to date, surpassing Life Insurance Corp’s Rs 21,000-crore IPO two years ago.
According to Tarun Garg, COO of Hyundai Motor India, the brand’s vision is clear: “We believe HMI has the capability to have the same market share in the EV space that we have in the ICE (internal combustion engine) space as well. Our upcoming four models and their localization will help us drive volumes and margins,” He added that Hyundai’s approach is built on the foundation of learning and adapting to the market, with several new EV models set to drive this growth. Hyundai is gearing up to launch four new electric models, with the first being the highly anticipated Creta Electric.
Garg highlighted that this launch would provide significant "headroom to grow market share” helping Hyundai tap into the mainstream EV segment. “IONIQ 5 is a great benchmark in the EV space. However, it’s in the niche segment. But in the next quarter, we’re going to launch the Creta Electric. This will give us a lot of headroom to grow our market share and then it will be followed by three more EVs in the mid-term. This is also being done with a lot of supply chain localization including battery packs, LFP cell manufacturing, power electronics, etc. and also the charging infrastructure,” said Garg. Hyundai’s focus on localization will not only help with cost control but also drive volumes and margins in the EV space. This strategy aims to offer a comprehensive electric vehicle ecosystem to Indian consumers.
India’s EV market is currently dominated by Tata Motors, which controls more than 65% of the market, followed by MG Motors JSW MG Motor India at 13%, and Mahindra at 9%. In comparison, Hyundai’s market share remains modest, but the company’s ambitious goals signal that this could change soon.
HMI’s Managing Director, Unsoo Kim, acknowledged the challenges but remained optimistic about India’s electrification journey. “It is true that future focus is not easy. However, India is in the early stages of electrification at around 2% penetration compared to other countries like the US and Korea at 10%, the European market at more than 20%, and China at more than 38%.
For many OEMs, EV is a big focus. We want to develop an EV ecosystem in India and are launching 4 EV models and localizing our portfolio. This will help us drive EV growth in India,” Kim said. He believes that India’s EV penetration will grow significantly by 2030, driven by government initiatives and evolving consumer preferences.
Learning from the Kona Experience
Hyundai entered the Indian EV market with the Kona in 2019, at a time when electric vehicles were still a nascent topic in the country. Despite being labelled a "late mover" by some, Garg believes that Hyundai’s decision to wait allowed it to understand the customer better. "Kona gave us a lot of learnings, like 85% of customers are charging at home or at the office and that customers currently are slightly hesitant to take their vehicles on highways. Localization of battery packs will help us position our EVs well,” he added.
This learning has shaped Hyundai's future EV strategy, with a stronger focus on DC charging infrastructure moving forward, as well as plans to localize battery production. Garg emphasized the need for a “top-down, comprehensive strategy,” stating that Hyundai is now ready to play a pivotal role in India’s electrification.
Hyundai’s powertrain strategy is not limited to electric vehicles alone. As India’s automotive landscape evolves, Hyundai plans to cater to a variety of customer needs, including CNG and flex-fuel vehicles. “On the way to full electrification, there are many powertrains like CNG, flex fuels, etc. It depends on customer preferences,” Kim explained.
Garg added that supported by the Hyundai Motor Corporation, HMI will be ready with different technologies depending on market demand. "Currently, diesel is playing a very important role in the SUV space. In fact as per our strategy, entry-level CNG penetration continues to grow. In Aura it is 85%, in Exter from 17% in the last two months, it has already reached 25-27%. CNG is going to play a very important role in the entry space," he added.