- Hyundai is betting big on SUVs for growth in the Indian market and the all-new updated Creta plays a crucial role in that strategy.
Hyundai hopes SUVs to contribute the lion’s share in the automaker’s total sales in India this year. SUVs like Creta, Exter, Venue, Alcazar etc to contribute 65 per cent of total sales for the brand in the country in 2024, hopes Hyundai Motor India’s COO Tarun Garg. While launching the all-new 2024 Hyundai Creta facelift, he also stated that the automaker hopes 20 per cent of its total sales to come from electric vehicles by the end of this decade.
SUVs accounted for around 60 per cent of Hyundai India’s total sales in 2023. The rapidly rising demand for utility vehicles has been playing a key role for the brand to re-energise its focus in the SUV segment. The momentum is expected to continue in 2024 as well, Garg reportedly told PTI. “Last year, SUVs accounted for 60 per cent of our total volumes. This year, we expect it to touch the 65 per cent mark,” he reportedly said.
Garg further stated that in 205, the SUV segment used to account for just around 13 per cent of the overall domestic passenger vehicle sales in India. The contribution has grown to 49 per cent in 2023, owing to the rapidly rising demand for utility vehicles across the country.
Talegaon plant to be instrumental for Hyundai
Hyundai has already purchased the Talegaon manufacturing plant from General Motors in 2023. The automaker is all set to invest ₹7,000 crore in the production plant. Maharashtra’s Deputy Chief Minister Devendra Fadnavis has claimed that the investment will be made to make the factory functional. This will be Hyundai Motor India’s second manufacturing plant in India after the automaker’s Tamil Nadu plant. The carmaker is all set to sign a MoU with the Maharashtra government at the World Economic Forum in Davos.
With this facility, Hyundai aims to increase its annual production capacity significantly. Speaking about the production strategy involving the new plant, Garg has reportedly said that this facility could play a crucial role in the brand’s strategy to reach 10 lakh units of production capacity per annum. “It’s a very important step for us to reach the 10 lakh production capacity,” Garg reportedly said. Currently, the automaker has 8.25 lakh units of annual production capacity at its Tamil Nadu facility.
Hyundai to launch multiple EVs in coming years
Hyundai aims to launch mass-market electric cars at multiple price points in India starting in 2025, revealed Garg. The carmaker currently sells two electric cars in the country, namely the Kona Electric and Ioniq 5. Both these EVs sit in the premium side of the Indian electric car market with the Kona Electric being priced around ₹24 lakh and the Ioniq 5 being priced around ₹46 lakh (ex-showroom).
The automaker hopes electric cars to account for 30 per cent of the brand’s total sales by 2030. “We believe that the industry EV penetration will be 20 per cent and we would like Hyundai to be in line with that,” Garg reportedly said. He also said that the electric vehicles meant to be launched starting in 2025, will be rolled out from the automaker’s Chennai facility. “We have been working on setting up the entire ecosystem, including localisation of the battery packs in order to bring down the battery and overall costs,” he added.
First Published Date: 16 Jan 2024, 22:16 PM IST
