Hyundai Looking to Venture into India's Premium EV Markets

Hyundai Motor India has announced a substantial investment plan of Rs 32,000 crore over the next decade, from 2023 to 2032, as revealed by Unsoo Kim during a press conference in Mumbai related to the HMIL IPO. Additionally, the company will allocate Rs 6,000 crore for its Pune facility. They are focusing on expanding its capabilities in the electric vehicle (EV) segment while pursuing a strategy of premiumization. The company views the SUV segment as a significant growth opportunity in India, leveraging its extensive global market experience to tap into the increasing demand for SUVs.

The new plant in Pune is expected to increase Hyundai’s production capacity from 824,000 units to approximately 1.1 million units, representing a 30% increase by 2028. This capacity expansion aims to provide significant headroom for both domestic sales and exports, enhancing the company’s market share.

The company plans aggressive investments in new product development, advanced technologies, and R&D capabilities within its Indian operations. The upcoming IPO, scheduled for subscription from October 15 to 17, will allow local and global investors to participate in Hyundai’s growth trajectory.

Hyundai highlighted its record-high rural penetration in India, dispelling the myth that rural customers predominantly prefer small cars. According to the company, the SUV contribution from rural areas has matched that of urban regions from January to September this year. This demonstrates a growing acceptance and demand for SUVs among rural consumers, further solidifying Hyundai's strategy in the Indian market.