The company’s flagship model, the compact sports utility vehicle (SUV) Creta, starts at 1.07 million rupees (approximately 17.18 million won). (Image courtesy of Hyundai Motor Co.)
SEOUL, Dec. 14 (Korea Bizwire) – Celebrating its 25th year of local production in India, Hyundai Motor is poised to achieve record-breaking sales in the Indian passenger car market this year. Analysts predict that if the company maintains its current monthly sales trend, it will surpass the 600,000-unit annual passenger vehicle sales mark for the first time.
According to a report from Hyundai Motor Group on Wednesday, Hyundai Motor sold 559,361 passenger vehicles in the Indian domestic market from January to November of this year, surpassing last year’s record of 552,511 units.
Additionally, Kia, which initiated local sales in India in 2019, demonstrated significant growth by selling 242,464 units through November of this year, compared to its first-year sales of 45,226 units.
Hyundai’s success in the Indian market is largely attributed to its effective localization strategy. The company initiated this strategy in 1998 by producing the Santro, a modified version of the Atos light car, at its Chennai plant in India.
The Santro’s design, tailored to meet the needs of Indian consumers, contributed to its popularity. Hyundai’s analysis highlights the success of the car’s spacious interior within a compact body size.
Thanks to its localization strategy, Hyundai experienced a sales increase from 410,000 units in 2014 to 550,000 units in 2018. Although sales dropped to 420,000 units in 2020 due to the COVID-19 pandemic, they have rebounded, and if the current monthly sales trend continues, annual sales are expected to reach 600,000 units.
Hyundai’s mid-priced sales strategy has also been a key factor in its success. The company’s flagship model, the compact sports utility vehicle (SUV) Creta, starts at 1.07 million rupees (approximately 17.18 million won), while the smaller Venue begins at 789,000 rupees (approximately 12.46 million won). Even the most expensive non-electric model, the Tucson, starts at just over 50 million won.
The Creta and Venue are Hyundai’s top-selling vehicles, with sales of 148,868 and 114,072 units, respectively, in the first 11 months of this year. In contrast, German premium brands BMW, Mercedes-Benz, and Audi, following a high-price strategy, have less than 0.5 percent of the domestic market share in India.
Having successfully established itself in the Indian market, Hyundai’s next challenge is to expand its electric vehicle (EV) sales. Hyundai introduced the Ioniq 5 to the Indian market in February this year, and since April, it has been selling over 100 units per month, with total sales this year exceeding 1,100 units.
By the end of 2024, the company plans to introduce an electrified version of the Creta, the Creta EV, to the Indian market. In May, Hyundai signed a memorandum of understanding (MOU) with the Indian state of Tamil Nadu, where its Chennai plant is located, to expand its EV infrastructure, including the construction of EV charging stations and an EV battery pack assembly plant.
Kevin Lee (kevinlee@koreabizwire.com)
