Hyundai Motor Company will push India up its global pecking order to become its second-largest market by 2030, or potentially earlier, on the back of deeper localisation, a broader product slate and a bigger role in exports and research and development, José Muñoz, President & CEO of HMC said at a media roundtable in Mumbai on October 15.
“We would like India to move from number four to number two… by 2030 or earlier. A very solid number two after North America, representing around 15% of our total volumes,” he said, adding that the plan is underpinned by 26 upcoming products, seven of which will enter new segments.
Muñoz underlined that India, not China, has been “more important” to Hyundai “for the last 30 years,” and will anchor the company’s next phase with end-to-end localisation—manufacturing, supply chain, product development and technology.
“You cannot compete today by exporting from one country to the world. You need to produce in Europe, in the US, and in India,” he said.
Hyundai already produces “100%” of what it sells in India locally and is the country’s largest passenger-vehicle exporter, with roughly 30% of output shipped overseas.
The company’s fresh India commitment—part of a broader global capacity and technology build-out—includes a Rs 45,000-crore programme focused largely on localisation of product development and engineering, along with the Pune plant ramp-up.
On competitive dynamics, Muñoz was unequivocal about the prospect of Chinese automakers returning to India amid improving geopolitical sentiments between the two nations.
“This may or may not happen… At the moment, they are not here. If it changes, we will adjust,” he said.
Hyundai, he argued, is already competing effectively with Chinese brands in open markets.
“In Europe we are the first non-European brand, number four overall. In Latin America, take Brazil for example, we are among the top players. If they come to India, we will increase competitiveness…more vertical integration, more localisation. Ultimately, the consumer will decide.”
Hyundai’s pitch, he added, rests on quality, durability and reliability, which support lower cost of ownership and high loyalty among Indian buyers.
Strategically, Hyundai is doubling down on a diversified powertrain mix after reassessing pure-EV assumptions about two years ago. The company now sees hybrids accelerating faster than battery-electric in many markets in the near term.
“Every month we grow 10–20% in EVs, which is very good, but 60–80% in hybrids,” Muñoz said, citing the US as an example.
For India, Hyundai plans to introduce eight hybrid models as part of a broader electrified push, with its current plan targeting about 55% of sales from electrified vehicles, split roughly evenly between EVs and hybrids, while retaining flexibility to swing with demand and regulations.
Muñoz stressed that Hyundai’s India growth blueprint is not a volume land-grab. Profitability, he said, is as critical as scale, and the company will not chase share at the expense of sustainable returns.
“Our objective is sustainable, profitable growth. I don’t want to lose the second position, and if I can, I want to be number one, but not by losing profitability,” he said. In mature markets, sustaining a 15% share is “quite good,” he noted, and the real target is a balanced trifecta of profit, volume and customer satisfaction. “It’s not either-or; it’s and.”
On capacity, Hyundai believes its current plan—about 1.1 million units annually across its Indian plants—covers the core growth trajectory, assuming industry growth of around mid-single digits and Hyundai’s own growth of roughly 7%. If demand outpaces forecasts, the company can first “stretch” existing lines and then add capacity. One lever will be to redirect a larger slice of export capacity to domestic sales if the market heats up.
Hyundai’s localisation push goes beyond stamping and assembly to product creation itself. The company is investing in India-relevant technologies (he cited CNG as an example) and in local R&D to sharpen cost competitiveness and feature relevance, including for entry segments and emerging niches such as off-road/overland vehicles. Over time, Hyundai also intends to deepen its portfolio in India, with Muñoz hinting at bringing the group’s luxury marque Genesis alongside expanded product development and talent investments.
Affordability will be addressed through financing as much as through vehicle pricing, Muñoz said, pointing to Hyundai’s global experience that first-time buyers convert faster when monthly payments are optimised. That informs Hyundai’s decision to keep a foothold in “entry” segments even as it rides the structural shift toward SUVs and premium vehicles.
“Entry allows you to onboard the customer and then move them up the ladder—just as many moved from smaller cars into Creta,” he said. The mix between entry hatchbacks, compact SUVs and small sedans will be market-driven, but the financing architecture—supported by Hyundai’s captive lending capabilities—will be central to widening access.
On policy and tariffs, Muñoz commented that Hyundai’s approach is long-term and adaptive rather than reactive.
He cited the new Savannah, Georgia facility in the US—conceived years before tariff moves—as evidence that Hyundai’s localisation decisions are strategic, not tactical.
“Tariffs, rules of origin, content norms—this is a highly regulated business. The rules change more often now, but every change is also an opportunity. If you adjust faster than others, you win,” he said, calling this agility Hyundai’s “Korean competitive advantage.”
Whether or not Chinese brands re-enter, the company believes its localisation depth, quality focus and flexibility on technology and capacity put it in position to defend share and expand margins.
“We want to win the market, not buy the market,” Muñoz said.
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