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Hyundai Motor Group’s lineup of cars sold in India (Hyundai Motor Group) |
Hyundai Motor Group said Sunday it is set to launch its first electric vehicle in India, the electrified version of its popular sport utility vehicle Creta, in January next year, solidifying its top-tier position in the fast-growing automotive market.
The Creta EV will be produced at the carmaker’s manufacturing plant in Chennai, southern India, which started operations in 1998. The company has recently pushed sales of SUVs, with the face-lifted three-row Alcazar SUV hitting the market in September this year.
When Hyundai Motor first forayed into the Indian market, it focused on manufacturing compact cars such as the i10 and Santro, equipped to drive on the narrow roads there.
However, as the auto industry began to experience rapid growth, the company produced the Creta in 2015, catering to a broader and more diversified customer base.
“The small-sized SUV is designed with roomy passenger seats to accommodate India’s extended family culture,” stated Hyundai Motor. “It also features high ground clearance and in-car air purifiers, making it well-suited for a ride in the country’s often poor road and air conditions.”
In the first year of the launch, Creta sold 40,888 units and was selected as Indian Car of the Year in 2016. Building on the success of the SUV, Hyundai Motor rolled out the Alcazar SUV in 2021 and the entry-level SUV Exter in 2023. With the addition of the Venue, Tucson and Ioniq 5 SUV models, the India lineup spanned six vehicle segments from compact to large-sized models.
The carmaker said the full lineup has led to a stellar performance in the booming market. After surpassing the 500,000 units mark in 2016, it posted record-high sales of 602,111 units in 2023 with a 14.6 percent market share, becoming India’s second-largest car brand. Last year, SUV sales took up 60 percent of its total sales with Creta, Alcazar and Exter selling over 220,000 units.
From January to September, 459,411 Hyundai cars were sold, 67 percent of which were SUVs. This is inches away from reaching this year’s sales target of 605,000 units.
Strengthening its foothold in the third-largest auto market -- following China and the US -- Hyundai Motor is aiming for bold sales expansion and vehicle electrification. Hyundai Motor Group Executive Chair Chung Euisun visited India in April and held the group’s first-ever overseas town hall meeting to discuss these strategies. “The Indian market is one of the key regions that has made the greatest contribution to Hyundai Motor Group’s growth,” Chung said.
The auto giant is upgrading facilities in its auto plant in Talegaon in the western state of Maharashtra, India, targeting an annual production capacity of 200,000 units by next year. It acquired the production base from General Motors last year which ceased operations for four years. With the Chennai plant, its annual capacity in India will exceed 1 million units.
Scaling up the EV business with the latest Creta EV, the company plans to roll out four additional battery-powered vehicles by 2030. It will also expand EV charging stations in the country from 43 to 485. Its smaller affiliate Kia has also partnered with local battery maker Exide Energy to discuss installing its batteries in Kia EVs.
Meanwhile, Hyundai Motor is about to set a record in the Indian stock market with its mega-size initial public offering. Hyundai Motor India’s IPO saw full subscription on Thursday, receiving 2.37 times bids.
The IPO price for the Indian subsidiary was determined at the upper end of the price band, valuing the company at $19 billion and raising approximately $3.3 billion. The company will begin trading on the Indian stock market on Tuesday.
