November 21, 2024

Business

Hyundai Plans to Make India a Car Production Hub for Emerging Markets

Kaumimarg Bureau / IANS | November 14, 2024 12:04 PM

New Delhi, Nov 14 – Hyundai Motor India (HMI) has unveiled major expansion plans to establish India as a production hub catering to the growing demand in emerging markets. The company aims to increase production to serve both domestic and international markets across Africa, the Middle East, Latin America, and South Asia.

Unsoo Kim, Managing Director of HMI, emphasized the strategic importance of balancing domestic and export volumes to secure profitability and mitigate market fluctuations. Hyundai recently boosted its production capacity by acquiring a new plant in Pune, raising India’s manufacturing capacity to 1.1 million units.

In line with its expansion strategy, Hyundai is investing in the electric vehicle (EV) ecosystem, with plans to introduce four EV models, including the much-anticipated Creta EV, while localizing essential EV components like battery packs, drivetrain, and battery shell.

Hyundai has also reported a strong 30% growth in registrations, supporting its position in the market. To maintain momentum, the company is preparing new launches such as the Alcazar facelift and the Creta EV.

However, export volumes experienced a temporary slowdown in Q3 due to shipping disruptions in the Red Sea region, linked to the geopolitical instability in the Middle East.

Last month, Hyundai Motor India went public with a $3.3-billion IPO, India’s largest-ever primary share sale. The IPO saw strong interest from institutional investors, with the Qualified Institutional Buyers (QIBs) category subscribed nearly 7 times.

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