Hyundai Motor Company is solidifying its leading position in the Indian automobile market by spearheading with locally tailored sport utility vehicles (SUVs). Hyundai plans to launch its first locally produced electric SUV model, the Creta EV, in early next year.
Scheduled for release in January next year, the Creta EV is the electric version of Hyundai’s first India-specific SUV, the Creta, which was launched in 2015. The Creta EV is the first electric vehicle to be produced locally since the Chennai plant in India began operations in 1998.
In September, Hyundai also launched a facelifted version of the locally strategic 3-row SUV Alcazar, further strengthening its lineup of locally tailored SUVs that target the Indian market conditions and customer demands.
Hyundai’s Secret to Second Place Market Share in India: 'Localization'
At the early stage of entering the Indian market, Hyundai focused on selling compact and small vehicles such as the i10 and Santro. The Santro, Hyundai’s first locally strategic model, gained immense popularity as the 'India’s national compact car,' helping Hyundai secure the second place in market share from its first year of entry.
In July 2015, Hyundai launched the Creta, its first locally strategic SUV model. The Creta is a compact SUV developed with thorough customization for Indian customers, reflecting India’s large family culture with spacious rear seating, increased ground clearance to accommodate poor road conditions, and an in-cabin air purifier. After its launch, the Creta ranked first in monthly sales among all SUVs in India for three consecutive months and sold over 40,000 units in its first year alone, earning the title of '2016 Indian Car of the Year (ICOTY)'.
Building on the success of the Creta, Hyundai consecutively launched the 3-row SUV Alcazar in 2021 and the entry-level SUV Exter in 2023. Along with the Venue, Tucson, and Ioniq 5, Hyundai has established a total of six SUV models across different segments. This diversified SUV lineup has contributed to strong sales performance in the Indian market.
Hyundai surpassed annual sales of 500,000 units in 2016 and set a new record last year by selling 602,111 units, securing second place among all brands with a 14.6% market share.
Last year, Hyundai sold approximately 360,000 SUVs in India, with over 226,000 units?more than 60%?coming from three locally strategic SUV models: Creta, Alcazar, and Exter.
Hyundai to Launch Five Electric Vehicle Models by 2030
Hyundai has also established a '2030 mid-to-long-term strategy' that includes a production system of one million units in India and the creation of an electrification ecosystem.
In April this year, Hyundai Motor Group Chairman Chung Eui-sun personally visited India and held a town hall meeting?the first overseas regional town hall?to discuss mid-to-long-term strategies through horizontal and open communication with local employees.
To respond to the growth of the Indian automobile market, Hyundai acquired the Pune plant located in Maharashtra from GM last year. Hyundai is upgrading the facility by applying its smart manufacturing system, aiming for a production capacity of over 200,000 units. Once the Pune plant becomes operational in the second half of next year, Hyundai will establish a one million unit production system centered on the Chennai plant (824,000 units) and the Pune plant.
With the launch of the Creta EV, Hyundai plans to accelerate its electrification business to secure a leading position in the Indian electric vehicle market. Hyundai intends to introduce five electric vehicle models to the Indian market by 2030, including the Creta EV.
Additionally, to build an electrification ecosystem, Hyundai plans to expand electric vehicle charging stations to 485 locations by 2030 using its sales network bases. Together with Kia, Hyundai has signed a business agreement with Indian battery specialist 'Exide Energy' to promote the use of locally produced batteries in dedicated electric vehicle models.
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