Hyundai’s Ambitious Plans for India: Investment, Localization, and Market Expansion
India is set to make history as Hyundai, the Korean automotive giant, prepares to list its shares on the Indian stock exchanges for the first time. With this move, Hyundai aims to strengthen its foothold in the Indian market and establish itself as a trusted brand in the country. To achieve this, the company has outlined an ambitious plan to invest Rs 320 billion in India over the next 8-10 years.
Indianizing Operations and Catering to Local Needs
Tarun Garg, the COO of Hyundai Motor India, expressed his belief that this is the right time for Hyundai to take a significant step forward and further Indianize its operations. The company acknowledges the importance of understanding and catering to local needs in order to secure a larger market share. Hyundai recognizes that developing products tailored to Indian customers requires robust local engineering and research and development (R&D) operations.
Investment in Test Track and R&D Center
Sources indicate that Hyundai has plans to increase its previously announced investment of Rs 14 billion for an advanced test track in Telangana. An additional Rs 6 billion will be allocated for this purpose, reflecting the company’s commitment to enhancing its R&D capabilities. Moreover, the company is considering an extra Rs 2 billion investment to further improve its R&D center located in Hyderabad. However, specific details about these investments have not been disclosed by Hyundai Motor India.
Striving for Future Growth
Wangdo Hur, the Chief Financial Officer and Executive Director of Hyundai Motor India, stated that the focus of the company’s investments would be on enhancing its R&D capabilities to ensure future growth. Hyundai aims to introduce more aggressive and innovative products, incorporating advanced technologies to meet evolving customer demands. By following a similar approach to Maruti Suzuki India, which established a significant R&D and engineering hub in Haryana, Hyundai intends to strengthen its position in the Indian market.
A Strategic Expansion
Having operated in the Indian market for 26 years, initially launching the popular Santro hatchback, Hyundai is expanding its efforts in its third-largest market after the USA and Korea. The company has increased its production capacity in India by an impressive 30% with the acquisition of a plant in Talegaon, near Pune. This plant has the capability to produce 250,000 units per annum, providing Hyundai with greater access to both domestic and export markets. Apart from the manufacturing advantages, this expansion also offers logistical benefits for streamlined operations.
The Road Ahead for Hyundai in India
Hyundai’s forthcoming listing on the Indian stock exchanges opens up exciting opportunities for the company in the Indian market. With an ambitious investment plan, a strong focus on localization, R&D enhancement, and efficient production capabilities, Hyundai aims to capture a larger market share in India. As the company intensifies efforts to tailor its offerings to Indian needs, customers can expect to see more aggressive products from Hyundai combined with advanced technologies, further solidifying the company’s standing in the Indian automotive industry.
