As Chung Eui-sun put forward a "home brand" strategy to become an Indian national company, Hyundai Motor Group is deliberating on which models to deploy in India. For now, given India's local conditions such as roads and income levels, which favor sport utility vehicles (SUVs) over sedans and small over large, it has set a sales strategy centered on small SUVs. To preempt India, now the world's No. 3 market, Hyundai Motor Group plans to expand its lineup to include mid- and large-sized vehicles as well as the luxury brand Genesis.
According to the complete vehicle industry on the 3rd, Hyundai Motor is developing a locally focused model with an official launch in India slated for 2027. This vehicle, which will be Hyundai Motor Group's first India-specific electric vehicle, will be a mini SUV and a model other than the Casper Electric. Hyundai Motor plans to complete development of the vehicle by leveraging India's local supply chain. A Hyundai Motor official said, "It will be a vehicle with design and product appeal favored by Indian customers." It is expected to compete with Chinese electric vehicle brands.
For Hyundai Motor Group, India is currently the fourth market after the United States, Korea, and Europe. According to the Society of Indian Automobile Manufacturers (SIAM), India's passenger car market is expected to grow 6% this year. SIAM noted that although Indian citizens' car ownership rate is still low, rising incomes each year and expanded urban redevelopment will boost passenger car demand. As India is growing rapidly, Hyundai Motor plans to deploy strategic models and build it into a second sales hub after the United States.
The growth targets Hyundai Motor and Kia set for the Indian market this year are 3.1% and 7.8%, respectively. Hyundai Motor plans to raise sales from 575,000 units last year to 592,000, while Kia aims to boost sales from 208,000 to 302,000.
Kia introduced the fully redesigned Seltos in India ahead of Korea for the first time in six years. With strong preference for small SUVs, it was a strategy to lift sales. Of the 4.48 million passenger cars sold in India last year, 2.54 million were SUVs. The Seltos sold 71,200 units in India last year, making it a popular model. Following the Sonet (an India-focused model), which sold 103,879 units, it ranked second among Kia's sales models. Kia previously set the Seltos' India sales target at 100,000 units.
Whether Hyundai Motor will roll out a new model in India this year remains uncertain, but it plans to maintain its lineup expansion stance. Earlier, Hyundai Motor Group said it would launch 26 models, including model-year updates, in India by 2030.
In particular, Hyundai Motor is considering introducing the Palisade, a large SUV that is popular globally. It reportedly planned to deploy it this year, but decided to watch the situation given the strong preference for small SUVs. An auto industry official said, "India has many unpaved roads, so there is a strong preference for SUVs that reduce road shock," adding, "In particular, because there are many narrow roads and motor vehicle taxes are also high, it is a country that prefers small SUVs."
It is also considering a Genesis entry. Hyundai Motor Group established the Genesis India subsidiary last year. A Genesis official said, "We created the subsidiary first, but the timing of entry and the models to be introduced have not yet been decided." The luxury car market is around 50,000 units, which is still smaller than in other advanced markets, leading to that assessment.
A Hyundai Motor Group representative said, "We will focus on increasing our market share in the Asia-Pacific region with India as a hub," adding, "We also plan to pursue a strategy to reduce product costs by increasing completely knocked down (CKD) production."