Ahead of its 30th anniversary in 2026, Hyundai Motor India is already coining its 2030 strategy. The slogan for 2030 strategy is ‘Innovator in Mobility and Beyond’. Hyundai’s subsidiary, Kia India, has also overhauled its operations to promote quantitative and qualitative growth through company’s ‘Kia 2.0’ strategy.
In that regard, Hyundai Motor Group Executive Chair Euisun Chung visited India to review the company’s mid-to-long-term mobility strategies for the future. This is the first time the Executive Chair has held an overseas town hall meeting outside of South Korea. Also present in the meeting were key executives from Hyundai Motor including Jaehoon Chang, President and CEO of Hyundai Motor Company, and Unsoo Kim, Managing Director and CEO of Hyundai Motor India.
The meeting concluded a manufacturing advance in the rapidly growing Indian automotive market. The aim is to establish an annual production capacity of around 1.5 million vehicles combining both Hyundai and Kia brands in India. A key facilitator of this plan will be expansion of EV lineup and create an EV ecosystem to accelerate customer uptake.
The commencement of production at Hyundai’s recently acquired Pune plant (from GM) last year will play a major role in achieving their goals. Company is currently making improvements towards Pune plant and establishing a production hub capable of 2 lakh units annually. Production is estimated to start in second half of 2025.
Combining Pune plant’s 2 lakh capacity with Chennai plant’s current production capacity of 8.24 lakh units, Hyundai Motor is looking at an annual production capacity of over 10 lakh (1 million) units. Kia India’s annual production capacity is set to be expanded to 4.31 lakh units by the first half of 2024. Combining Kia’s numbers, Hyundai Motor Group is looking at an annual production capacity of 15 lakh per annum (1.5 million).
Electric vehicles will play a crucial role in the company’s growth ambitions. Hyundai aims to launch its first locally produced EV in Indian market in 2025. This is likely to be Creta EV which is already spotted testing on multiple occasions. Mass production of its first local electric SUV (Creta EV) will commence by the end of 2024 at Hyundai’s Chennai plant.
The company aims to expand EV portfolio to incorporate five new EVs by 2030. The holistic approach by Hyundai Motor India towards EVs will result in expanding EV charging infrastructure by 2030. Not just Hyundai, Kia is keen to make a splash in Indian EV space with their first local EV slated to hit production in 2025 with more to break covers in the future.
Recently, Hyundai and Kia signed an MoU with Exide, a leading Indian battery company, in a bid to pursue local manufacturing of batteries that will power dedicated EVs for India.
During the meeting, Executive Chair Chung said “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.
“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.”
Speaking about the company’s electrification strategy, Executive Chair Chung said, “We will develop EVs tailored to the Indian market and expand EV infrastructure in the region. We will lead the next generation of mobility in India, playing a key role in electrification, and we will continue to elevate Hyundai as a premium brand.”
This post was last modified on May 1, 2024 8:36 am