Hyundai Motor is set to boost its presence in India with a major strategy shift, including new SUV launches and a significant $3 billion public listing. The South Korean automaker plans to introduce its first India-manufactured electric vehicle early next year and two new gasoline-powered models by 2026 as part of its efforts to reclaim market share.
Once a leading foreign automaker in India, Hyundai has seen its market share diminish from 17.5% to 14.6% over the past four years, as domestic competitors like Tata Motors and Mahindra & Mahindra gained ground with their new SUVs. Hyundai aims to counter this trend by expanding its SUV lineup and enhancing its product offerings.
The company’s IPO, which marks its first public listing outside South Korea, underscores its optimistic outlook on India’s car market, despite challenges from increased competition and a shrinking footprint in China. Hyundai’s current market share lags only behind Maruti Suzuki, with Tata Motors’ share having nearly tripled to 14% during the same period.
Hyundai plans to introduce its first locally-made electric SUV in 2025, with four additional EVs to follow by the end of the decade. This rollout will be complemented by hybrid models and a broader strategy to increase global sales by 30% by 2030. The company aims to elevate its profile as a premium brand in India, where it has already invested $5 billion and plans to invest another $4 billion over the next decade.
The two new gasoline-powered SUVs planned for India include a model based on the Bayon crossover and a larger SUV intended to compete with the Mahindra XUV700. These additions are expected to boost Hyundai’s annual sales by around 120,000 units. Hyundai’s portfolio in India currently features eight SUVs, with the mid-sized Creta being a top performer.
Despite these efforts, Hyundai faces fierce competition from Tata, Mahindra, and Maruti, each ramping up their electric and gasoline-powered vehicle offerings. As Hyundai prepares for its IPO and new model launches, it must navigate a challenging market landscape to regain its former prominence.
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