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Hyundai Motor Group's Executive Chair visits India; evaluates the group's mid-to-long-term future mobility strategies

By Staff Writer ,

Added 25 April 2024

Executive Chair, Euisun Chung conducted an in-depth review of and engaged in detailed discussions on Hyundai Motor Group's mid-to-long-term strategies in India at the new Hyundai Motor India Headquarter Delhi office, situated in Gurugram. A town hall meeting was also held on April 23 to communicate in person with Hyundai Motor India employees.

Hyundai Motor Group (the Group or HMG) Executive Chair, Euisun Chung, visited India to review the Group's mid- to long-term future mobility strategies, which lay the foundation for its leadership in the Indian market and sustainable growth. The first overseas town hall meeting with the Executive Chair was also held with Hyundai Motor India employees.

Amid the growing strategic importance of India, Executive Chair Chung's visit to the country aims at exploring various business opportunities in the rapidly evolving Indian market. The Group also dedicates itself to fulfil its social responsibilities through culturally attuned CSR and ESG activities, in addition to positioning itself as an attractive company for Indian customers.

Celebrating its 30th anniversary in 2026, Hyundai Motor India is developing its 2030 strategy under the slogan ‘Innovator in Mobility and Beyond'. Kia India, which has also quickly grown into a major Indian automobile brand, is also promoting quantitative and qualitative growth through its ‘Kia 2.0' strategy.

Executive Chair Chung conducted an in-depth review of and engaged in detailed discussions on Hyundai Motor Group's mid-to long term strategies in India at the new Hyundai Motor India Headquarter Delhi office, situated in Gurugram. A town hall meeting was also held on April 23 to communicate in person with Hyundai Motor India employees. The purpose of the meeting was to share the group's vision and engage with colleagues ahead of new opportunities such as the establishment of an annual production system of one million units and the promotion of the group's electrification strategy.

Alongside Executive Chair Chung, key executives from Hyundai Motor—including Jaehoon Chang, the President and CEO of Hyundai Motor Company, and Unsoo Kim, Managing Director and CEO of Hyundai Motor India—participated, in addition to 400 Hyundai Motor India employees.

Hyundai Motor Group is delivering a major manufacturing advance in the Indian region with the establishment of an annual production system of 1.5 million vehicle units for Hyundai Motor India and Kia India combined. The Group will expand its EV lineup and create an EV ecosystem to accelerate customer uptake and expand charging infrastructure. It will also strengthen its SUV sales leadership and promote social responsibility activities in consideration of Indian culture.

The event marked the first time that Executive Chair Chung held a town hall meeting outside of Korea. He has previously conducted two town hall meetings in Korea, and last year he led Hyundai Motor Group's New Year's event in the form of a town hall meeting.

Mid-to-long-term strategies to solidify HMG's leading position in the Indian mobility market

Hyundai Motor Group has set its mid-to-long-term strategies to proactively respond to the Indian automotive market as well as further solidify its position as a leading mobility company. Key to this is laying the groundwork to expand production. Hyundai Motor India will start operating its Pune plant in the second half of next year. Located in Maharashtra, western India, the production facility was acquired from GM last year. Hyundai Motor is currently making improvements to the facility to create a production hub capable of building more than 200,000 units annually, using smart manufacturing technology and systems.

With the addition of the Chennai plant's production capacity of 8,24,000 units, Hyundai Motor will have an annual production capacity of over one million units when combined with the Pune plant.

Kia India's yearly production capacity will also be expanded to 431,000 units within the first half of this year. Combined, Hyundai Motor Group will have the ability to produce approximately 1.5 million units annually in India. Hyundai Motor Group also plans to strengthen its EV leadership in the Indian EV market through its electrification strategy.

Hyundai Motor India plans to unveil its first locally produced EV in India next year and proactively respond to the growth of the Indian EV market. Starting with the mass production of its first electric SUV model at the Chennai plant at the end of 2024, the company plans to further produce five EV models by 2030. Hyundai Motor India will also utilise its sales network hubs, expanding the number of EV charging stations to 485 by 2030.

Kia India will also start production of its local EV model in 2025 and plans to further expand its EV models. The company will also focus on building EV charging infrastructure.

Hyundai Motor and Kia recently signed a Memorandum of Understanding with Exide Energy Solutions Ltd., a leading Indian battery company, and are pursuing the local production of batteries for dedicated Indian EV models.

Hyundai Motor Group aims to expand its presence in the local EV market, by localising the production of EV batteries, which account for a significant portion of EV cost. This strategy will ensure price competitiveness in the price-sensitive Indian market.

Following its growing status in India, Hyundai Motor Group is also enhancing its commitment to humanity and social responsibility.

In 2006, Hyundai Motor India established the Hyundai Motor India Foundation (HMIF) to support various social causes and has actively engaged in social responsibility activities. The company has engaged in environmental sustainability by planting 80,000 trees to protect forests and water resources. It is also recycling factory waste materials into desks and chairs, as well as upcycling community waste with biogas and electricity. Hyundai has also addressed social challenges through mobile clinics, science libraries, and support for public vocational schools in India.

Since 2023, Kia India has also been promoting its ‘Green Workshop' project, which evolves its sales offices into eco-friendly facilities. The solar panel powered facility optimises water and energy usage extensively, which helps in meeting more than 80 per cent of the energy requirements while powering an EV AC charging unit. The company is also running an economic self-reliance support programme for women in India with projects to publicise the hazards of plastic waste and restore wilderness areas through planting trees.

Town hall meeting: Sharing a vision and strengthening trust ahead of new challenges

More than 3,000 employees also joined the town hall meeting online, including those at Hyundai Motor India headquarters in Gurugram, the Chennai Plant, Pune Plant, and each regional headquarters.

Executive Chair Chung stressed at the beginning of the meeting, "Our customer-centric mindset is always at the heart of our business to enhance what we can offer our customers and to better humanity," highlighting the company's philosophy.

Executive Chair Chung also focused on India's diversity, saying: "India is a diverse country, and combined with Hyundai Motor Group employees' creativity and collaboration, this can be our strength."

Explaining the reason that he suggested the town hall meeting in India, Executive Chair Chung said, "The success of these ambitious initiatives by Hyundai Motor India is a testament to the creative and innovative efforts of our employees across the region."

Extoling Hyundai Motor Group's success in the Indian market, Executive Chair Chung highlighted Hyundai Motor Group's technological strengths as well as the loyalty and trust of those who have chosen Hyundai for many years.

"Hyundai brought its expertise in producing compact cars and advanced technology. The favourable conditions of the Indian automobile market combined with Hyundai's technological strengths led to synergistic results," added Executive Chair Chung. "However, above all else, the key factors behind Hyundai's success in India are the dedication of its employees, who are among the brightest minds globally and demonstrate profound integrity."

During the meeting, Executive Chair Chung also emphasised the strategic importance of the Indian region

"Hyundai Motor India has been pivotal in driving the growth of the Hyundai Motor Group, having navigated through numerous challenges, including the COVID-19 pandemic, global economic crises, and supply chain disruptions due to semiconductor shortages. We take pride in consistently securing the second-largest market share in this vibrant market and will continue to elevate Hyundai as a premium brand.

"India is among the fastest-growing economies globally, and as this growth continues, the strategic importance of Hyundai Motor India will only increase. By leveraging our strong reputation and competitive quality in India, we aim to expand exports to neighbouring countries, making India the global export hub to boost our regional market competitiveness."

Hyundai Motor India employees expressed significant interest in the company's EV business plan in the Indian market.

"By around 2030, we expect to see a substantial expansion in the EV market. In anticipation of this evolution, Hyundai is focused on developing locally tailored EVs aimed at establishing us as a leading global EV brand," explained Executive Chair Chung. "We also plan to proactively build charging stations at strategic locations, including dealerships, to facilitate the adoption of EVs."

During the town hall meeting, Executive Chair Chung underlined plans for social responsibility in the region, commenting: "Hyundai's success in India is rooted not just in our business operations but in our commitment to humanity and social responsibility.

"We are committed to advancing carbon neutrality and supporting the circular economy to ensure sustainable growth for humanity. Our products are designed to address social issues, and our business initiatives provide opportunities for youth groups and the underprivileged to develop skills and pursue their dreams."

Hyundai Motor Group has achieved strong growth over the past 28 years, since Hyundai Motor India first entered the Indian market in 1996.

For the January-March period this year, Hyundai Motor Group brands recorded combined sales of 225,686 vehicles, up 1.5 percent year over year. Hyundai Motor Group aims to achieve sales of around 890,000 units this year, a targeted 3.9 percent increase over the 2023 performance of around 857,000 units combined in India.

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