Hyundai India planning more SUV launches amid $3 billion IPO
Hyundai Motor India is planning to introduce a series of new SUVs, to regain its market share from strong domestic competitors in the country, according to Reuters. This strategy coincides with the company's preparation for a $3 billion public listing in India. The first product will be an electric vehicle (EV) manufactured in India, set for release early next year.
Market share dips as domestic rivals rise
Despite being second only to Maruti Suzuki in sales, Hyundai has seen its market share decrease from 17.5% to 14.6% over the past four years. This decline is attributed to new SUV launches by Tata Motors and Mahindra & Mahindra, which have significantly increased their market presence. In contrast, Tata's share has nearly tripled to 14% during the same period while Hyundai's next biggest foreign rival, Toyota's share has risen from 4% to 6%.
Investment and future plans in India
India is the third-largest revenue generator for Hyundai after the US and South Korea. The company has already invested $5 billion in India, with plans to invest an additional $4 billion over the next decade. Following the launch of its first EV, Hyundai intends to release four more EVs by 2030 as part of its strategy to make India a regional EV export hub.
Premiumization strategy and market balance
Hyundai also plans to introduce hybrid cars in India as part of a broader strategy to boost global sales by 30% by 2030. The company aims to sell higher-priced vehicles in India to increase margins. The proportion of its cars priced at least $18,000 - considered upmarket in India - doubled from 7.5% between 2021 and 2023, as per the draft IPO papers filed in June.
Performance and future prospects
Despite a decrease in market share, Hyundai recorded its highest-ever sales in India last fiscal year (FY). The company entered the Indian market in 1996 with affordable hatchbacks like the Santro. However, as customer preferences shifted toward SUVs, Hyundai adapted by launching its first locally-made SUV, the CRETA, which has become a significant revenue generator for the company.
Upcoming ICE SUVs for India
Hyundai is planning to launch two new ICE SUVs in India. The first will be based on its Bayon crossover, currently sold in global markets, and will compete against Maruti's Fronx and Tata's Nexon SUV. The second model will be larger than CRETA and is expected to compete with Mahindra's XUV700. These two SUVs are projected to add approximately 120,000 units annually to Hyundai's volumes.
