Facing increasing competition and a recent dip in market share, Hyundai Motor India Ltd (HMIL) has laid a clear roadmap anchored on six strategic priorities to revive growth and reinforce its position in the world’s third-largest car market.
These priorities—detailed in the company’s FY2024–25 Annual Report—focus on product portfolio expansion, deeper localisation, electrification, calibrated capacity growth, premiumisation, and a stronger digital and export push.
The company acknowledges that macroeconomic uncertainties, global supply disruptions, and evolving consumer preferences have intensified competitive pressures.
At the same time, India’s changing policy environment—favourable repo rates, tax relief, and improving infrastructure—is beginning to create tailwinds for demand recovery.
“With a solid foundation, clear strategic vision, and unwavering dedication, Hyundai Motor India is poised to drive the next wave of transformation in India’s mobility landscape,” said Unsoo Kim, Managing Director of Hyundai Motor India.
A Closer Look at 6 Strategic Priorities
1. Product Portfolio Expansion
Hyundai plans to launch 26 new models and upgrades by FY2030, including 6 electric vehicles (EVs) and 20 internal combustion engine (ICE) vehicles, spanning segments and price points.
This portfolio diversification includes new models, full model upgrades, and feature enhancements, aimed at addressing a broad spectrum of customer expectations — from entry-level buyers to aspirational consumers looking for high-end variants.
The company’s expansion strategy is built on strong market feedback loops, integration of global R&D capabilities, and efforts to democratize key technologies like ADAS, connected tech, and convenience features across more models and trims .
2. Electrification and EV Ecosystem Development
Following the launch of Creta Electric, Hyundai is preparing for a phased EV rollout, gradually expanding into mass-market segments as the EV infrastructure matures. The company has started local battery pack assembly and plans to localize critical EV components like battery cells, power electronics, and drivetrains to enhance affordability.
To support EV adoption, HMIL will scale up its fast-charging network to over 600 stations over the next 6–7 years and expand smart home charging and dealership-level infrastructure. It also aims to make EV ownership more seamless through upgrades to its myHyundai EV charge app, customer-centric services, and incentives for home charging.
3. Premiumisation
Recognizing India’s shift toward value-driven buying and premium experiences, Hyundai is aggressively pursuing a premiumisation strategy.
This includes launching high-end trims, equipping more models with top-end features like ADAS Level 2, sunroofs, connected car tech, and ventilated seats — all at accessible price points.
With mid-to-top variants seeing higher traction across segments, the company aims to maintain margin growth while enhancing customer satisfaction. This also reflects Hyundai’s broader aspiration to democratize premium mobility by integrating tech and comfort in mass-market vehicles .
4. Deepening Localisation and Manufacturing Capacity
Hyundai is scaling up its manufacturing capabilities to meet rising domestic and export demand. The Talegaon plant, set to begin partial commercial operations in FY2025-26, will initially raise annual production capacity to over 1 million units and 1.07 million units once fully operational.
Hyundai is embedding lean manufacturing, advanced MES (Manufacturing Execution Systems), and digital tools across plants to improve efficiency. A key focus is building a robust vendor ecosystem around Talegaon, targeting enhanced indigenisation and reduced cost structures.
5. Strengthening Export Hub Positioning
Despite geopolitical and supply chain challenges, HMIL’s exports stood resilient at over 163,000 units in FY25, and they started FY26 with a 21% y-o-y growth in April exports.
Hyundai has launched or expanded models like the Exter and Alcazar facelift in regions like South Africa, Latin America, and the Middle East, reaffirming India’s importance as a global production and export hub for the group.
The export strategy is tied to the product pipeline and Talegaon’s capacity, with flexibility built into shipping and logistics for sustained growth.
6. Digitalisation and Network Expansion
Hyundai is enhancing customer engagement through a dual-channel strategy — expanding physical outlets while upgrading its digital ecosystem. The ‘Click to Buy’ platform and the ‘myHyundai’ app offer a seamless journey from car booking to financing and service support.
Hyundai is also introducing AI-driven features like voice-based searches, personalised car recommendations, and online loan eligibility tools.
As of March 2025, HMIL had a retail footprint of 1,419 sales outlets across 1,056 towns, adding an average of four new monthly outlets. The company is also working to enhance rural penetration through road infrastructure leverage and focused dealer partner expansion.
Capital Market Recognition and Strategic Confidence
FY25 was also notable for Hyundai’s landmark listing on the Indian bourses. Its IPO was the largest-ever in Indian automotive history. HMIL was included in the MSCI Global Index, NIFTY Next 50, and BSE 500 within six months, underlining investor confidence in its fundamentals and long-term prospects.
Despite a low single-digit domestic growth forecast for FY26, HMIL remains optimistic, citing robust demand drivers, improving financing conditions, and a recalibrated product and pricing strategy.
With strategic clarity and investment commitment, Hyundai is betting on its six-pronged approach to regain lost share and drive profitable growth amid intensifying competition and a tough macroeconomic environment.