With car penetration in India still at a relatively low level, passenger vehicle sales in the domestic market are expected to witness robust growth over the period.
11 Mar 2024 | 4455 Views | By Kiran Murali
South Korean automaker Hyundai Motor is looking at India as a crucial market for its operations as the passenger vehicle market here continues to grow by leaps and bounds. “India is a focal market for Hyundai, and our commitment to Indian customers and India’s growth remains unwavering,” said Unsoo Kim, ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
South Korean automaker Hyundai Motor is looking at India as a crucial market for its operations as the passenger vehicle market here continues to grow by leaps and bounds. “India is a focal market for Hyundai, and our commitment to Indian customers and India’s growth remains unwavering,” said Unsoo Kim, the managing director of Hyundai Motor India Ltd, while speaking at the launch of Creta N Line today.
India is currently the third-largest market for passenger vehicles globally and continues to be among the fastest-growing markets. With car penetration in India still at a relatively low level, passenger vehicle sales in the domestic market are expected to witness robust growth over the period. The faster pace of economic growth in India is also expected to give a further boost to sales.
Hyundai Motor India has managed to grab a significant share of India’s passenger vehicle market, riding the consumer shift in preference towards sports utility vehicles and the premiumisation trend. The automaker is currently the second-largest carmaker in the country.
“In the last 27 years, Hyundai Motor India, has made significant strides in the Indian automotive market. We have challenged the status quo all along the way,” Kim said. “To understand the rapidly changing needs and expectations of Indian customers, we keep our ears to the ground to carefully and closely monitor changing market preferences,” he added.
Hyundai Motor India has committed an investment of Rs 6,000 crore Talegaon facility in Maharashtra. The Talegaon facility is the company’s second plant in India which it bought from General Motors. Apart from this, the automaker will invest around Rs 26,000 crore in Tamil Nadu by 2032. This investment will go towards building capacity and product development, largely for electric vehicles as it looks to enter the mainstream electric vehicle market in the next financial year.
“As we look forward to the next decade of progress for Hyundai Motor India, we will make strategic investments towards increasing production capacity, setting up new manufacturing units, democratising EVs, introducing products and technologies matching customer and nation’s objectives, and undertaking initiatives for the betterment of society,” Kim said.
The company plans to expand its production capacity to 1 million units from the current 8.3 lakh units. The Telegaon plant will bring in the additional capacity by next year.
India is the largest market for Hyundai Motor globally after South Korea, accounting for around 18% of the total volume. The Indian unit reported its highest-ever revenue and profits during the financial year 2023. The turnover hit Rs 60,000 crore, representing a growth of 27 percent. Profit which came in at Rs 4,653 crore, was highest amongst the non-listed automotive companies in the country, with a growth of 62 percent.
Recently, there have been media reports that said Hyundai Motor India is considering an initial public offering and is slated to be India's biggest listing if it goes through. The company is reportedly assessing to dilute 15-20% to raise USD 3.3- 5.6 billion.
Also read
Hyundai Creta N Line prices begin from Rs 16.82 lakh
Hyundai India’s sporty N Line package clicks with new-age buyers, Creta to provide fresh charge