India's burgeoning automotive market is increasingly capturing the attention of global automotive companies, marking the country as a key player in the industry's future. With a rapidly expanding middle class and a young demographic inclined towards aspirational lifestyles, India presents a lucrative market for automakers looking to expand their footprint. The country's growing economy, coupled with government initiatives promoting electric vehicles (EVs) and sustainable mobility, further enhances its appeal to global automotive giants seeking new growth opportunities.

India's strategic position as a manufacturing hub offers significant advantages to international car manufacturers. India's significance as a key market for global automotive companies is underscored by Hyundai Motor Group's strategic initiatives aimed at fortifying its presence in the country. Recently, Hyundai's Executive Chair, Euisun Chung, visited India to assess the Group's future mobility strategies, reflecting the company's commitment to leveraging India's potential within its global framework.

The visit aligns with Hyundai Motor Group's overarching goal of consolidating its position as a premier mobility provider in India, capitalising on the nation's dynamic business landscape. Central to this strategy is the expansion of production capacity, with Hyundai Motor India set to commence operations at its Pune plant in the latter half of next year. This facility, acquired from GM in the previous year, is being upgraded to accommodate a production capacity exceeding 200,000 units annually, integrating smart manufacturing technologies for enhanced efficiency.

By augmenting its Chennai plant's capacity to 824,000 units per year and expanding Kia India's production capacity to 431,000 units in the first half of this year, Hyundai Motor Group is poised to achieve a combined annual production capacity of approximately 1.5 million units in India. Beyond bolstering domestic sales, the Group aims to strengthen its foothold in the exports market, leveraging India's growing economy. Executive Chair Chung emphasised India's strategic importance, highlighting Hyundai Motor India's role as a key export hub to enhance regional market competitiveness.

"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," Executive Chair Chung stated, emphasising India's strategic importance and Hyundai Motor India's pivotal role in the Group's global operations.

Growing importance of EV market

Electric vehicles (EVs) have garnered significant global attention over the past decade, with India emerging as a key growth market in this space. While global EV growth has faced challenges, India's EV market is on a steady rise. Recognising this trend, Hyundai Motor Group is aiming to bolster its leadership in the Indian EV market through a robust electrification strategy.

Hyundai Motor India is set to unveil its first locally produced EV in India next year, kickstarting a plan to introduce five EV models by 2030. The company aims to commence mass production of its first electric SUV model at the Chennai plant by the end of 2024. To support this initiative, Hyundai Motor India plans to expand its EV charging infrastructure, targeting 485 charging stations by 2030.

Similarly, Kia India plans to commence production of its local EV model in 2025, with a focus on expanding its EV lineup and building a comprehensive EV charging network.

Hyundai Motor and Kia have signed a Memorandum of Understanding with Exide Energy Solutions Ltd., a prominent Indian battery company, to locally produce batteries for dedicated Indian EV models. This move is strategic, aiming to localise production and enhance price competitiveness, crucial in India's price-sensitive market. Executive Chair Chung highlighted the company's commitment to developing locally tailored EVs and expanding EV infrastructure to establish Hyundai as a leading global EV brand.

He emphasised proactive measures, such as building charging stations at strategic locations, including dealerships, to facilitate widespread EV adoption in India. This electrification strategy underscores Hyundai Motor Group's ambition to spearhead the next generation of mobility in India, positioning Hyundai as a premium brand synonymous with innovation and sustainability.

“By around 2030, we expect to see a substantial expansion in the EV market. In anticipation of this evolution, Hyundai is focused on developing locally tailored EVs aimed at establishing us as a leading global EV brand," explained Executive Chair Chung. He further added, “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."

Beyond business

During his visit to India, Executive Chair Chung not only highlighted the growing business opportunities for the Hyundai Group but also underscored the importance of Corporate Social Responsibility (CSR) for the company. He emphasised the company's customer-centric approach, stating, "Our customer-centric mindset is always at the heart of our business to enhance what we can offer our customers and to better humanity," reflecting Hyundai's core philosophy.

Additionally, he acknowledged India's diversity, noting, "India is a diverse country, and combined with Hyundai Motor Group employees' creativity and collaboration, this can be our strength."

Executive Chair Chung also commended Hyundai Motor India for its role in driving the growth of the Hyundai Motor Group, particularly amidst challenges such as the COVID-19 pandemic, global economic crises, and semiconductor shortages. He expressed pride in Hyundai consistently securing the second-largest market share in India, affirming the company's commitment to elevating Hyundai as a premium brand in the country.

Moreover, Executive Chair Chung outlined Hyundai's plans for social responsibility in the region, stating, "Hyundai's success in India is rooted not just in our business operations but in our commitment to humanity and social responsibility." He highlighted Hyundai's commitment to advancing carbon neutrality and supporting the circular economy for sustainable growth.

Chung also emphasised Hyundai's initiatives to address social issues through product design and provide opportunities for youth groups and the underprivileged to develop skills and pursue their dreams, showcasing the company's dedication to creating a positive impact on society.

In 2006, Hyundai Motor India established the Hyundai Motor India Foundation (HMIF) to actively engage in social responsibility activities and support various social causes. The company has planted over 80,000 trees since then to protect forests and water resources. Additionally, Hyundai is recycling factory waste materials into desks and chairs, as well as upcycling community waste for biogas and electricity generation.

The company has also addressed social challenges through initiatives such as mobile clinics, science libraries, and support for public vocational schools in India. Since 2023, Kia India has been promoting its 'Green Workshop' project, transforming its sales offices into eco-friendly facilities. These facilities are powered by solar panels, optimising water and energy usage, and meeting over 80 per cent of the energy requirements while also powering an EV AC charging unit. Kia India is also running an economic self-reliance support program for women in India, along with projects to raise awareness about the hazards of plastic waste and restore wilderness areas through tree planting initiatives.

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