January 20th, 2025
At the Bharat Mobility Expo 2025, Hyundai Motor India’s Managing Director, Unsoo Kim, candidly admitted that the company had underestimated the rapid growth of India’s electric vehicle (EV) market. However, Hyundai is determined to bridge the gap, leveraging its global EV expertise, expanding local production capacity, and introducing a range of locally-manufactured electric models.
Hyundai’s EV Journey in India
Early Entry and Market Lessons
- Hyundai entered the Indian EV market in 2019 with the launch of the Kona Electric, a premium electric SUV. Despite being one of the earliest EVs in India, the Kona was discontinued in June 2023, highlighting challenges in pricing and consumer demand.
- In 2023, Hyundai introduced the Ioniq 5, a CKD (completely knocked down) model, aimed at a niche segment.
Future Focus
Hyundai now plans to adopt a top-down strategy, starting with premium offerings and expanding into affordable EV segments. Key initiatives include:
- Launching three new locally-manufactured EV models.
- Starting with the Creta Electric, followed by models targeting mass-market segments.
Leveraging Global Expertise
Hyundai’s global success in the EV space, particularly in US and European markets, positions it well for India’s competitive landscape.
- Advanced Technology: Access to cutting-edge battery packs, motors, and other EV technologies will ensure Hyundai offers innovative and competitive solutions.
- Design and Efficiency: Hyundai’s experience with models like the Ioniq 5 and Ioniq 6 will influence its Indian portfolio.
Production Expansion
Hyundai is ramping up its local production capabilities to meet the growing demand for EVs in India.
Pune Plant Expansion
- Phase 1: Will add 1.7 lakh units of capacity by Q4 2025, accommodating both ICE and EV production.
- Segment Coverage: The plant will support the production of vehicles across segments, including hatchbacks, sedans, SUVs, MPVs, and EVs.
Competitive Landscape
Current Rivals
- Tata Motors: A market leader with five EV models, including the Nexon EV and Tiago EV, and more launches in the pipeline.
- MG Motor India: Gaining traction with models like the Windsor, Comet, and ZS EV, offering innovative solutions at competitive prices.
Hyundai’s Market Goals
- Hyundai aims to capture over 14% market share in India’s EV segment in the medium to long term.
- The company’s focus on affordable and innovative solutions will be key to competing with established players.
Why Hyundai’s Strategy Matters
Hyundai’s revamped approach signals a serious commitment to India’s electric mobility transformation. By leveraging its global strengths and expanding local operations, Hyundai aims to:
Strengthen Market Position: Compete directly with leaders like Tata Motors and MG Motor India, carving out a significant share of the growing EV market.
Boost Mass-Market Adoption: Offering affordable EVs tailored to Indian consumers.
Enhance Manufacturing Capabilities: Scaling production to meet rising demand for both ICE and EV models.