- Hyundai is betting big on SUVs for growth in the Indian market and the all-new updated Creta plays a key role in that strategy.
Hyundai expects SUVs to be a major contributor to the automaker’s overall sales in India this year. Hyundai Motor India COO Tarun Garg expects SUVs like Creta, Exeter, Venue, Alcazar, etc. to contribute 65 percent to the brand’s total sales in the country in 2024. Whereas All-new 2024 Hyundai Creta launched facelift, he also said that the automaker expects 20 percent of its total sales to come from electric vehicles by the end of this decade.
SUVs accounted for about 60 percent of Hyundai India’s total sales in 2023. The rapidly increasing demand for utility vehicles is playing a vital role for the brand in reactivating its focus in the SUV segment. Garg reportedly told PTI that this momentum is expected to continue in 2024 as well. “Last year, the share of SUVs in our total sales was 60 per cent. This year we hope it will touch 65 per cent,” he reportedly said.
Garg further said that in 2055, the SUV segment will account for about 13 per cent of total domestic passenger vehicle sales in India. The contribution is expected to increase to 49 percent in 2023 due to rapidly increasing demand for utility vehicles across the country.
Talegaon plant will prove important for Hyundai
Hyundai has already bought the Talegaon manufacturing plant from General Motors in 2023 Automaker is all set for investment 7,000 crores In the production plant. Maharashtra Deputy Chief Minister Devendra Fadnavis has claimed that investment will be made to start the factory. 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 an MoU with the Maharashtra government at the World Economic Forum in Davos.
With this facility, Hyundai aims to significantly increase its annual production capacity. Speaking about the production strategy associated with the new plant, Garg has reportedly said that the facility can play a key role in the brand’s strategy to reach 10 lakh units production capacity per annum. “It is a very important step for us to reach 10 lakh production capacity,” Garg reportedly said. Currently, the automaker’s Tamil Nadu facility has an annual production capacity of 8.25 lakh units.
Hyundai to launch multiple EVs in coming years
Hyundai Garg said that the aim is to launch electric cars on a large scale in India at various price points by 2025. The carmaker currently sells two electric cars in the country Kona Electric and Ioniq 5. Both these EVs are in the premium side of the Indian electric car market, with the Kona Electric priced at around 24 lakh more ionic 5 The price is said to be around Rs 46 lakh (ex-showroom).
The automaker expects electric cars to account for 30 percent of the brand’s total sales by 2030. “We believe that EV penetration in the industry will be 20 per cent and we would like Hyundai to follow suit,” Garg reportedly said. He also said that the electric vehicles to be launched in 2025 will be launched from the automaker’s Chennai facility. “We are working on setting up the entire ecosystem including localization of battery packs to reduce battery and overall cost,” he said.
First publication date: 16 January 2024, 22:16 PM IST