Hyundai Motor India confirms plans to launch hybrid vehicles soon

Also plans to expand EV portfolio and production capacity

Hyundai Motor India Limited (HMIL) has confirmed its plans to introduce hybrid vehicles in the Indian market in the near future. While the exact timeline is yet to be specified, the country’s second-biggest carmaker is confident of meeting customer preferences with its range of powertrain options.

In a chat with the media at the listing ceremony of the company's shares at the National Stock Exchange, Unsoo Kim, managing director of HMIL, said, “Our parent company, Hyundai Motor Company, offers a wide range of powertrain options, including petrol, diesel, CNG, electric, hybrid, plug-in hybrid, and even hydrogen. As a result, HMIL has access to this diverse powertrain technology and plans to introduce hybrid vehicles in the Indian market to meet customer preferences. I cannot specify the exact timeline, but we are planning, and we are aligned with our customers' preferences.”

 

Currently, Hyundai operates in India with a production capacity of 824,000 units annually. With the upcoming acquisition of the Talegaon plant in Pune, Hyundai aims to increase its capacity by an additional 250,000 units, marking a 30 per cent boost in production.

The expansion will occur in two phases: the first phase will add 170,000 units by 2025, followed by an additional 80,000 units by 2028. "This gives us more headroom in both the domestic and export markets," said Tarun Garg, chief operating officer and whole-time director, HMIL.

HMIL's move to introduce hybrids, coupled with its vast portfolio of powertrains, aligns with broader industry trends. As per Jato Dynamics India, between January and September 2024, sales of CNG vehicles surged by 46 per cent, and hybrid vehicles saw a 19 per cent increase, outpacing the 7 per cent growth in electric vehicles (EVs). This shift is attributed to factors such as affordability, practicality, and consumer preferences for a balanced approach to fuel efficiency and performance.

Currently, a major part of Hyundai’s growth strategy still includes a stronger push into the EV segment. At present, Hyundai’s EV portfolio is limited, with the Ioniq 5 catering to a niche market. This too is likely to change as the company gears up for the launch of the Creta Electric in Q4 FY25, slated to hit the market between January and March 2025. The Creta is one of Hyundai’s most popular SUV models, and its electric version is expected to significantly enhance Hyundai’s market share in the EV space.

"Creta is a very strong brand, and we believe its electric version will give us an opportunity to grow in the EV segment," said Garg. Hyundai plans to follow this up with three more electric vehicles in the mid-term.

Hyundai is also localising key components such as battery packs, lithium iron phosphate cells, and power electronics, and investing in charging infrastructure across highways and prominent locations. The company already has 17 DC fast chargers in place and plans to expand this network further.

The company has been focusing on “premiumisation,” offering high-end features such as ADAS (Advanced Driver Assistance Systems) and connected car technology, among others. This has led to a shift in consumer preference towards premium models, with top-end variants contributing 23 per cent of Hyundai’s overall sales currently, up from 14 per cent in 2019. SUVs have also become a dominant segment for the company, contributing 70 per cent of its sales in September 2024.

"We believe Indian consumers are becoming more aspirational. Customers want more features, higher design quality, and advanced technology in their cars," said Garg.

Hyundai is also heavily investing in its India operations. The company plans to invest Rs 32,000 crore, with Rs 6,000 crore allocated to its Pune plant and Rs 26,000 crore for its Tamil Nadu operations over the next decade. This investment will support the launch of new models, expand R&D capabilities, and introduce advanced technologies into the Indian market.

Despite the dip in HMIL's stock price on its first day of listing, the company remains optimistic about its future in India. "The overwhelming response to our IPO from sovereign funds, insurance companies, and retail investors shows the level of interest in Hyundai's growth story," said Garg.

"The Indian auto industry is growing faster than many global markets, and Hyundai is ready to take advantage of that growth. We remain confident and optimistic about the future," concluded Garg.