India set to become Hyundai’s No. 2 market ahead of FY30: Tarun Garg

Hyundai Motor India expects India to become its second-largest market globally ahead of its FY30 target, as the automaker ramps up investments, expands production and positions the country as a major export and product-development hub.

Speaking at the Business Today India at 100 Summit — India@100: India’s Manufacturing Champions — in New Delhi on Friday, Hyundai Motor India Managing Director and CEO Tarun Garg said the company’s confidence in India had strengthened significantly.

“We have announced that by FY30, we will be number two. Let me tell you, we will achieve it much faster than that,” Garg said.

India currently accounts for around 18.5-19% of Hyundai Motor Company’s global contribution, up from about 15% five years ago, Garg said. The US, Korea and Europe currently rank ahead of India.

The comments come as Hyundai executes a ₹45,000-crore investment programme through FY30, covering manufacturing expansion, electrification and new products. The company plans to introduce 26 products and variants over the period.

Garg said Hyundai had invested around ₹40,000 crore during its first 30 years in India and plans to invest a similar amount over the next five years. Manufacturing capacity is expected to rise from 994,000 units to more than 1.1 million units.

India emerges as Hyundai’s export and R&D hub

A key part of Hyundai’s India strategy is to increase exports. The company has exported more than 3.9 million vehicles to around 150 countries, with exports accounting for 24.5% of overall sales in the last fiscal, compared with around 20% two to three years ago. Garg said Hyundai is targeting a 30% export contribution over the next five years.

The company is also making India the exclusive production base for newer models such as the new Venue. Garg said the opportunity was expanding from emerging markets to developed markets as free trade agreements open up.

“For example, the outgoing Venue was produced in both Korea and India, but the new Venue is exclusively produced in India,” he said.

For Hyundai, the next phase is also about moving up the value chain.

“So far, I think it was all about making in India with great global quality. But now, I think we have to move from ‘Make in India’ to ‘Create in India’,” Garg said.

Hyundai’s Hyderabad R&D centre employs around 1,300 engineers, and the company plans to transfer technologies from its global R&D centre in Namyang to India. Garg also said Hyundai was encouraging suppliers to allocate part of their revenues towards R&D.

EV push gathers pace

Garg also pointed to the sharp increase in EV adoption in India. According to him, electric vehicles accounted for only around 2.4-2.5% of the market about a year and a half ago, but had reached 7% in July.

He attributed the growth to the increasing number of EV models across price segments and the government’s PM E-DRIVE scheme, particularly its focus on charging infrastructure. Hyundai’s MyHyundai app now provides customers access to around 30,000 charging points across the country, he said.

Hyundai is preparing to launch a dedicated sub-four-metre electric SUV in India in the current fiscal year. Garg said the vehicle would be aggressively priced and supported by a charging ecosystem covering AC and DC chargers, particularly on highways.

The company has already localised battery packs and is working on power electronics, drivetrains and other components. It has also partnered with Exide for local battery cells.

Hyundai has begun exporting the Creta EV to neighbouring markets, which Garg said would help the company build expertise around homologation, battery logistics, charging requirements and customer behaviour before scaling up EV exports.

26 products and a wider powertrain strategy

Hyundai’s product expansion will span multiple powertrains as it prepares for intensifying competition. Garg said the company would continue to offer petrol, diesel, CNG, strong hybrids, electric and hydrogen technologies.

“Competition will intensify, but I think so will Hyundai’s commitment to growth,” he said.

The company is also working on connected vehicles and over-the-air updates. Garg said the vehicle of the future would continue to improve after it leaves the showroom, rather than remaining unchanged throughout its ownership cycle.

“Now, the car can continue to improve throughout its lifecycle. I think this is what is called a software-defined vehicle, and we are really betting big on it,” he said.

Garg said Hyundai’s India strategy was not limited to market share and profits, but also involved creating employment, expanding manufacturing, increasing exports and contributing to the Indian economy.

He linked that ambition to the government’s Viksit Bharat 2047 vision, saying Hyundai would continue to focus on localisation, employment generation and exports.