Hyundai Motor Group CEO Eisun Chong visited India on Tuesday to discuss the group's medium- to long-term future strategy. This comes as South Korean automakers are increasing production capacity and electric vehicle production in India, and are also planning to expand into the capital. market.
“The first overseas town hall meeting with the Executive Chairman was also held with Hyundai Motor India employees. It was to engage with colleagues ahead of new opportunities such as driving the Group's electrification strategy.”
The event, held on Tuesday, marked the first time Executive Chairman Chung has held a town hall meeting outside of South Korea.
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Hyundai Motor India Ltd. (HMIL), which is celebrating its 30th anniversary, will start operating its Pune plant in the second half of next year. The production facility was acquired from General Motors last year.
Hyundai Motor is currently renovating the facility to generate annual production capacity of more than 200,000 vehicles.
When combined with the Chennai plant's production capacity of 8.24 million units and the Pune plant, HMIL's annual production capacity will exceed 1 million units. Kia India's annual production capacity will also be expanded to 4.31 billion units during the first half of this year. Combined, Hyundai Motor Group will have the capacity to produce approximately 1.5 million vehicles annually in India.
HMIL's annual production capacity is expected to reach 1 million units by 2025, and combined with Kia India, Hyundai Motor Group's annual production capacity will be 1.5 million units.
The Group will expand its EV portfolio, build an EV ecosystem to accelerate customer uptake, and expand its charging infrastructure. It will also strengthen its leadership in SUV sales.
“India is one of the fastest growing economies in the world, and as this growth continues, Hyundai Motor India's strategic importance will only increase. By leveraging certain qualities, we aim to expand exports to neighboring countries and make India a global export hub that increases the competitiveness of regional markets,'' Chong said in a statement.
HMIL plans to launch its first locally produced EV in India next year. Starting with mass production of the first electric SUV model at the Chennai plant at the end of 2024, the company plans to produce five more EV models by 2030. Hyundai Motor India will also utilize its sales network to expand the number of EV charging units. Increased to 485 stations by 2030.
“We will develop EVs tailored to the Indian market and expand the EV infrastructure in the region. We will lead next-generation mobility in India and play a key role in electrification, making Hyundai a premium We will enhance it as a brand,” he added.
In the first quarter of 2024, Hyundai Motor Group's brands recorded total sales of 225,686 units, an increase of 1.5% year-on-year. Hyundai Motor Group aims to achieve sales of approximately 890,000 units this year, which is a 3.9% increase over India's overall sales of approximately 857,000 units in 2023.