Hyundai Motor India is gearing up to make India a strategic production hub for emerging markets, driven by a surge in both domestic and export demand, the company said on November 13.
Speaking during an investor call, Managing Director Unsoo Kim revealed plans to capitalize on India’s growing appetite for vehicles and a booming export market across the Middle East, Africa, South Asia, and Latin America.
"We are seeing the domestic volume is increasing, demand is increasing, also export market is also increasing. And then, we have a very suitable product lineup for emerging markets," Kim said during the conference.
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Kim noted that Hyundai Motor India’s well-rounded portfolio for emerging markets, paired with India's rising sales volumes, has created a unique balance of growth and resilience for the company. "With a healthy mix of domestic and export volumes, we not only secure profitability but gain a natural hedge against market fluctuations," he added.
To support its growing demand, Hyundai Motor India has recently expanded its production capacity by acquiring a new plant in Pune, Maharashtra. The addition brings Hyundai’s overall manufacturing capacity in India to 1.1 million units, ensuring the company can meet both domestic and export needs. The management highlighted that Hyundai saw a robust 30 percent growth in registrations, further bolstering Hyundai’s market position. Inventory levels now stand at under four weeks, even as Hyundai prepares to launch new models like the Alcazar facelift and the highly anticipated Creta EV.
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During the quarter, export volumes fell mainly due to the Red Sea crisis or
exposure to the Middle East region. Domestic sales for the quarter also fell amid subdued demand, reflective of the cyclicality and seasonality of the industry.
On the EV side, the company said its access to the parent company's global EV and the battery technology makes it well-positioned to launch the EV ecosystem in India. "We are developing our EV ecosystem in India. We are planning to launch four EV models, including the CRETA EV. And we are also localizing EV supply chains like the battery pack, driver train and the battery shell," he added.
At about 1:20 pm, Hyundai Motor India shares were trading at Rs 1,729, lower by 4 percent on the bourses. The stock has slipped 7 percent in the past week.
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