Hyundai has set aside a portion of the IPO proceeds to expand its EV ecosystem in India.
Hyundai Motor India is getting ready for the next level, with an IPO just around the corner. With the Creta EV set to debut in the fourth quarter of this fiscal year, the automaker is prepared for a dramatic portfolio shift.
In a recent interview, Hyundai Motor India’s COO, Tarun Garg, and Managing Director, Unsoo Kim, discussed the company’s overall growth strategy.
Creta EV Launch
One of its best-selling cars, the Hyundai Creta has gotten a new design in the current year, tremendously elevating its demand. The introduction was a success, securing the Creta’s position in India’s competitive SUV market. In addition, Hyundai has introduced the Creta N Line and the Alcazar in response to the increasing demand for premium cars in India.
Hyundai’s Creta EV marks a significant step into India’s growing electric vehicle (EV) industry.
“In terms of electric vehicles, India is in its early stages of electrification. India’s EV market is expected to grow greatly by 2030, because of the government’s strong initiatives and many OEM EV concentrations. “Hyundai Motor India has strong access to Hyundai Motor Company’s EV and battery technologies, which is helping us build an EV ecosystem in India,” Kim told reporters.
Four New EV models
Hyundai intends to introduce four new EV vehicles in the mass and premium markets, firmly establishing itself as a market leader in the ever-changing automotive industry. Kim also stressed Hyundai’s strategic goal of creating a locally based EV ecosystem that includes supply chains for battery packs, drivetrains, and other critical components.
Hyundai’s IPO and Expansion
With an IPO on the horizon, Hyundai Motor India is set for a new age of growth. Garg stated that the timing is perfect, with India’s GDP growth continuously above global norms and Hyundai’s Pune factory expansion adding significant capacity.
Pune Plant Growth
The new facility, which will raise output by 250,000 units, is an important aspect of Hyundai’s strategy to strengthen its position in both domestic and foreign markets.
In terms of Hyundai, as you can see, we are expanding with the Pune plant, adding 250,000 capacity, so we believe this is just the appropriate time for the next phase of Hyundai’s expansion in India, and as we previously stated, the IPO is most likely a stepping stone to that next phase.” Garg explained. Hyundai’s SUV portfolio, which includes models such as the Venue, Exter, and the upcoming Creta EV, accounts for 68% of total sales, much above the industry average.
“We believe in the quality of growth,” Garg said, adding, “Growing in both volume and profits, making it more sustainable. We have a very strong local and export mix of 80-20, as you can see. The people of India have shown us so much love and affection over the previous 28 years. We believe in establishing a true India connection.”
During the festival season
Hyundai forecasts a boost in sales as the festive season approaches, particularly during major festivals such as Navratras, Dussehra, and Dhantera. Garg claimed that sales had been strong in the first few weeks of the season, with more growth expected in the coming months.
“The first week went relatively well. So we are confident that the holiday season will bring a lot of joy to customers, automakers, and, of course, the country’s economy,” Garg stated.
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