Hyundai to invest Rs 5,000 cr for expansion in India

Over next four years, it aims to launch eight new cars

 South Korean automobile major Hyundai has charted a Rs 5,000 crore expansion plan in India, which includes introduction of eight new cars over the next four years.

“Our plans translate to launching two cars every year, which could range from compact cars, sedans or SUVs. Besides, we constantly roll out major refreshments of existing models. We will be investing Rs 5,000 crore towards the said plans,” Hyundai Motor India (HMIL) Director (Marketing and Sales Division) Rakesh Srivastava told DH.

Hyundai came to India 20 years ago, with tallboy sensation ‘Santro’. Since then, the company has invested over $3.2 billion (over Rs 21,000 crore) in India, while its vendors invested $1.2 billion (about Rs 7,500 crore) in total. The company has also invested $32 million (over Rs 200 crore) in R&D, which has included product development. In the last 13 years of its Indian journey, Hyundai has emerged the second largest carmaker in the domestic market, while it leads on the export front.

Globally, Hyundai sells five million cars a year, while India has contributed 14.7% to global sales in the first seven months of this year, compared with 13.2% last year.

“India is the third largest market for Hyundai, after China and the US. We are bullish on this market. While export is a very important part of our strategy, we also want to grow domestically with sustained growth,” HMIL Executive Coordinator and Director (Sales and Marketing Division) Sung Jong Ha said.

Today, Hyundai holds 17% share in the booming Indian car market, with market leader Maruti Suzuki holding a lion’s share of over 50%.

Sharing the strategy to fight competition, Srivastava said, “We are aiming to be a modern premium brand. Besides a product splurge, we look to enhance customer experience through innovative showrooms based on the Hyundai Global Dealership Space Identity (GDSI). We are also looking at digitally connecting with our customers, while we expect 20% of sales emanating from the 404 dedicated sales outlets that have been initiated in rural areas. We are eyeing to tap multiple customer groups, including institutional buyers.”

The company’s stable in India offers a wide range of products priced between Rs 3 lakh and Rs 30 lakh, across segments. Meanwhile, Hyundai launched the Next Gen Verna in Bengaluru on Wednesday, with introductory prices starting from Rs 7,99,900 (for petrol), and Rs 9,19,900 (for diesel), respectively.