In the midst of worldwide recessionary conditions, Hyundai Motor Group’s Indian operations have played a pivotal role in driving growth for the Korean automotive conglomerate. Euisin Chung, the group’s executive chair, emphasized the significance of India as the world’s third-largest automobile market and outlined the company’s plans to expand production capacity in the country. With a special focus on sport-utility vehicles (SUVs) and electric vehicles (EVs), Hyundai aims to strengthen its presence and tap into the growing demand.
Expanding Production Capacity
Hyundai Motor Group is set to expand its annual capacity in India, encompassing both the Hyundai and Kia brands, by more than a third to 1.5 million vehicles within the next year. This significant increase aims to meet the growing demand in the Indian market. The group recognizes the importance of India’s fast-growing economy and seeks to bolster its presence by focusing on SUVs and EVs. Euisin Chung highlighted the establishment of an annual production system of 1.5 million vehicle units for Hyundai Motor India and Kia India combined, marking a major manufacturing advance in the Indian region.
To facilitate this expansion, Hyundai Motor India plans to open its Pune plant, which was acquired from General Motors, in the second half of the next calendar year. The company is upgrading the facility to produce over 200,000 vehicles annually. When combined with the Chennai plant’s existing capacity of 824,000 vehicles, Hyundai Motor India’s total annual capacity will exceed one million vehicles. Additionally, Kia India’s annual capacity will be expanded to 431,000 vehicles in the first half of this calendar year. With these developments, Hyundai and Kia will achieve a combined production capacity of approximately 1.5 million vehicles per year in India.
Capitalizing on India’s Growth and Export Potential
India’s status as one of the fastest-growing economies globally makes it an essential market for Hyundai. Euisin Chung emphasized the strategic importance of Hyundai Motor India, stating that as India’s growth continues, its significance within the Hyundai Motor Group will only increase. Furthermore, Hyundai aims to leverage its presence in India to boost its export potential to neighboring countries and enhance regional market competitiveness.
Embracing Electric Vehicles (EVs)
Hyundai Motor India is actively embracing the electric vehicle revolution. The company plans to unveil its first locally produced EV model, an electric SUV, next year. Mass production of this vehicle will commence at the Chennai plant towards the end of 2024. Hyundai’s vision extends beyond a single EV model, as the company aims to produce a total of six EV models by 2030. This ambitious plan aligns with Hyundai’s goal of becoming a leading global EV brand.
In preparation for the anticipated expansion of the EV market around 2030, Hyundai is focused on developing locally tailored EVs that resonate with Indian consumers. The company aims to establish itself as a leader in the EV space by creating an EV ecosystem that includes an expanded charging infrastructure. Hyundai Motor India plans to utilize its sales network and increase its charging station network to 485 by 2030.
Kia’s Future plans
Kia India, a subsidiary of Hyundai Motor Group, is also poised to make significant contributions to the EV market in India. The company plans to introduce its first locally produced EV model in 2025 and intends to expand its EV range in the future. Like Hyundai, Kia India also recognizes the need to develop charging infrastructure to support the adoption of EVs.
In Conclusion
Hyundai Motor Group’s Indian operations are at the forefront of driving growth for the conglomerate, even in the face of worldwide recessionary conditions. By expanding production capacity, focusing on SUVs and EVs, and capitalizing on India’s growth and export potential, Hyundai aims to meet the rising demand in the Indian market. With ambitious plans to produce a range of locally tailored EVs and build a robust charging infrastructure, Hyundai and Kia are well-positioned to make a significant impact in the Indian EV market. As India continues its economic growth trajectory, Hyundai’s strategic investments and innovative approach will ensure its continued success in this dynamic market.
