Hyundai Motor India, a subsidiary of South Korea’s Hyundai Motor Company, has been operating in India for over 27 years with the motto of “Progress for Humanity”. Since its entry in 1996, it has disrupted the Indian market with modern designs and innovative technology. Initially focused on small cars, Hyundai India quickly captured consumer interest through its value-driven offerings. The company introduced features and specifications that resonated with Indian buyers, enhancing its appeal. Consequently, Hyundai Motor India has emerged as one of the leading automakers in the country. Now, let’s explore 10 fascinating facts that highlight its market dominance and significant impact on the automotive industry.
Here are the 10 facts you must know about Hyundai Motor India Limited
1. Hyundai Motor India became the highest automotive exporter in JUST One Decade
Hyundai Motor India has set remarkable benchmarks in automotive exports. It became the first automotive company in India to export over 1 million cars, achieving this milestone by February 2010. This achievement marked a rapid growth trajectory and a strong commitment to international markets. By March 2008, they had already exported 5,00,000 units, and it reached 3 million exports by 2020, serving 88 countries across five continents.
In the financial year 2020-21, Hyundai India exported 104,342 passenger vehicles, reaffirming its status as the largest exporter of passenger vehicles from India. Popular models, such as the Creta and Venue, played a crucial role in this achievement. Furthermore, Hyundai leads in SUV exports, having shipped over 2 lakh units of these models to markets like Mexico and South Africa.
The company boasts a diverse export lineup of 10 models, including the Grand i10 and All-New Creta. This variety allows Hyundai Motor India to cater to global preferences effectively. Despite challenges like the pandemic, the company showcased resilience and operational excellence, with exports accounting for approximately 21% of total vehicle sales in FY23. This solidifies its position as a leading player in the automotive export sector.
2. Hyundai Motor India’s R&D center advances compact car innovation and safety
They boast a state-of-the-art research and development center located in Hyderabad’s Hi-tech City, known as India’s Silicon Valley. Spanning 200,000 square feet, this facility represents an investment of approximately Rs 184 crore (around $28.92 million). With a workforce of around 900 trained engineers, Hyundai Motor India focuses on enhancing both business acumen and technical skills to meet the evolving automotive landscape.
The center offers advanced engineering services, including Computer-Aided Design (CAD) and Computer-Aided Engineering (CAE). These services support the engineering of popular models like the Eon, Grand i10, and Creta. As Hyundai’s fourth overseas R&D center, it collaborates with facilities in South Korea, the U.S., Germany, and China. This global network enhances the quality of vehicles tailored to local consumer needs.
Furthermore, the center plays a vital role in developing products for the compact car segment, ensuring they meet local and international standards. Hyundai Motor India prioritizes safety features, fuel efficiency, and noise reduction in vehicle design. The engineering teams are also involved in developing advanced driver assistance systems (ADAS), body electronics, and telematics.
The facility significantly contributes to Hyundai’s reputation, establishing it as the largest passenger car exporter in India for several consecutive years. Looking ahead, HMIE will play a crucial role in Hyundai’s expansion into electric vehicles (EVs) and eco-friendly technologies, responding to global market trends.
3. Hyundai Motor India gears up for a major IPO launch in the third week of October
Hyundai Motor India is gearing up for a significant IPO launch, featuring approximately 14.2 crore shares, representing a 17.5% stake in the company. The total estimated size of this offering is around INR 25,000 crores (approximately $3 billion). This IPO is classified as an offer-for-sale, meaning proceeds will benefit the selling shareholders, primarily Hyundai Motor Company, rather than HMIL itself.
Each share is expected to have a face value of ₹10. However, the exact price band will be determined closer to the launch date. The shares will be allocated among various investor categories, including 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII). Retail investors will likely have a minimum investment requirement below ₹15,000, while non-institutional investors may need to invest around ₹2 lakh, and large non-institutional investors about ₹10 lakh.
The allotment date for the shares is expected to be finalized in the third week of October 2024, shortly after the subscription period closes. The listing of shares will occur on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This IPO could potentially become one of the largest in Indian history, following notable past IPOs such as those by LIC and Paytm.
The primary objective behind this IPO is to raise funds that will enhance liquidity and provide an opportunity for existing shareholders to monetize their investments through a public listing. Established in 1996, Hyundai Motor India has grown to become the second-largest car manufacturer in India, with a market share of approximately 15% as of FY 2024. The company has also been India’s largest exporter of passenger vehicles since 2005.
4. Hyundai Motor India’s IPO aims to raise INR 25,000 crores
Hyundai Motor India is preparing for a landmark IPO, anticipated to raise approximately INR 25,000 crores (around $3 billion). This figure positions it as one of the largest IPOs in Indian history, second only to LIC’s INR 21,000 crore offering in May 2022. Hyundai Motor Company will sell 142,194,700 equity shares, representing a 17.5% stake in their post-IPO.
The price band is expected between INR 1,750 and INR 1,760, designed to attract strong investor interest. Moreover, at least 35% of the offer will be allocated to retail individual investors. This strategic move aims to boost participation from smaller investors, further widening the investor base.
It holds a significant market share of approximately 14.2%, making it the second-largest passenger vehicle manufacturer in the country. With reported revenues of INR 60,307.58 crores for FY23, Hyundai is projected to achieve around INR 70,000 crores in FY24. The company’s impressive profitability metrics, including a net profit of INR 4,709.25 crores, reinforce its strong market position. Following the IPO, Hyundai plans to invest around INR 32,000 crores in developing new technologies and launching five new electric vehicles by 2030.
5. The Hyundai Santro who changed the Indian market against the Classic Maruti 800
The Hyundai Santro made a significant impact upon its launch on September 23, 1998. Designed as a city car, it featured a tall-boy design that provided ample headroom and space. This innovative design distinguished it from competitors like Maruti 800 and Zen. Initially equipped with a 999 cc engine, it produced 56 PS of power, later upgraded to a 1.1-litre engine with 63 PS in 2003.
The Santro quickly gained popularity, selling about 60,000 units in its first two years. By 1999, it achieved 17,627 domestic sales, growing to over 120,000 units by 2003. This success propelled Hyundai India to become India’s second-largest automobile manufacturer within months, challenging Maruti Suzuki’s dominance. At its peak, the Santro accounted for about 76% of Hyundai Motor India’s total sales in India.
Culturally, the Santro symbolized upward mobility for Indian families during economic liberalization, representing a shift to middle-class status. After its discontinuation in 2014, Hyundai Motor India reintroduced the Santro on October 23, 2018, with modern features. Despite initial success, demand declined, leading to its discontinuation again in 2022, as consumer preferences shifted toward SUVs and other segments.
6. Hyundai Motor India has won the ICOTY award for the maximum of 8 times
It enjoys a stellar reputation in the automotive sector, underscored by its multiple Indian Car of the Year (ICOTY) awards. Established in 2006, the ICOTY Award is one of the most prestigious accolades in India. Each year, a jury of senior automotive journalists evaluates new car launches, considering factors like safety, performance, and innovation. Hyundai Motor India has won this award multiple times, beginning with the Hyundai i10 in 2008 and most recently with the Hyundai Exter in 2024.
This consistent recognition reflects Hyundai’s ability to innovate and adapt to Indian consumers’ preferences. The ICOTY 2024 ceremony, held at the Buddh International Circuit, highlighted the Exter’s impressive features and exceptional value. Notably, it competed against strong contenders, including the Maruti Suzuki Jimny and Honda Elevate.
In addition to the ICOTY wins it has garnered other accolades, such as the J.D. Power Appeal Awards in 2016. This award recognized Hyundai’s commitment to quality, particularly in models like the Elite i20 and Creta. These achievements collectively position Hyundai Motor India as a leader in the market, showcasing its dedication to excellence and consumer satisfaction.
Hyundai’s ICOTY Wins:
7. The Lesser-known models are also a symbol of a diverse range of offerings
Hyundai Motor India has an impressive product lineup, covering everything from passenger vehicles to commercial trucks, catering to diverse customer needs. With 13 models in its current passenger car lineup, including popular options like the Grand i10 NIOS, CRETA, and the all-electric IONIQ 5, Hyundai addresses various segments in the market. This broad range helped Hyundai capture 15% of the Indian passenger vehicle market in FY 2024.
Additionally, Hyundai manufactures commercial vehicles like the HD170 and HD1000 heavy-duty trucks, broadening its market reach. Over the years, lesser-known models such as the Santro Xing, Accent, and first-gen Tucson contributed to Hyundai Motor India’s growth and legacy. The Santro Xing, for example, was vital in establishing Hyundai’s presence when launched in 1998. Their diverse offerings have allowed it to sell nearly 12 million passenger vehicles in India by 2024.
Their ability to cater to both individual and business needs has made it a formidable player, dominating various automotive segments. This strategic variety, combined with consistent innovation, has secured Hyundai’s position as India’s second-largest car manufacturer.
8. Hyundai Motor India is set for Sustainability through EVs
Hyundai India is taking major steps toward sustainability and electric vehicle (EV) expansion. The company plans to invest ₹20,000 crores ($2.4 billion) to develop EVs in India, supporting the country’s shift to greener transportation. By 2030, Hyundai aims to launch five new EV models, including the electric Creta, set for release in early 2025, to stay ahead of competitors like Tata Motors.
Hyundai is also focused on building the necessary infrastructure, planning to expand its EV charging stations to 485 locations by 2030. Additionally, a third manufacturing facility will produce 75,000 battery packs annually, boosting local production capacity beyond 1 million units a year. Partnering with Exide Energy Solutions for local battery production will further reduce costs.
In terms of sustainability, Hyundai’s Chennai facility is nearly 80% self-sustainable in water usage, with complete self-sustainability targeted by 2027. The plant also features a 10 MW rooftop solar installation, contributing to Hyundai’s renewable energy goals.
By 2030, they aim to capture 22% of the Indian BEV market, marking a significant leap from its current 2% share. These initiatives position Hyundai India as a leading force in India’s electric and sustainable vehicle future.
9. Hyundai operates over 1000 sales points across India
Hyundai India has built a robust dealer network, ensuring its presence across the country. As of 2024, the company operates 1,366 sales points, allowing customers to easily access Hyundai vehicles in diverse regions. This widespread network offers convenience, making the brand highly accessible for both urban and rural buyers.
Along with sales points, Hyundai Motor India has established 1,550 service centers nationwide. These service points provide timely maintenance and support, ensuring customers enjoy a smooth and hassle-free ownership experience. With this extensive network, it strengthens its commitment to customer satisfaction.
Since its entry into the Indian market in 1996, Hyundai has significantly expanded its dealer network. From a few outlets in its early days, Hyundai India now has one of the most extensive networks in the country, reflecting its growing market demand. This growth has positioned Hyundai as a key competitor in the automotive landscape.
While Maruti Suzuki still leads with over 2,400 sales outlets and 4,000 service points, Hyundai Motor India continues to close the gap. Its commitment to expansion, service, and accessibility demonstrates the brand’s competitive edge in the market. Through this strong dealer network, it has strengthened its position as a trusted and accessible brand for millions of Indian consumers.
10. Hyundai Motor India is the second biggest player ahead of Tata and Mahindra
Hyundai India holds a significant position in the Indian automotive market, with a market share of 14.9%. Since its entry in 1996, it has become a key player. Hyundai’s success comes from offering a diverse lineup of vehicles, including popular models like the Creta, Venue, and i20. While Maruti Suzuki leads the market with a substantial 41.6% share, Hyundai continues to grow.
As of September 2023, the market share of the leading car manufacturers in India is divided as follows:
In FY 2023-24, Hyundai Motor India reported its highest-ever domestic sales of 6.14 lakh units, reflecting an 8.3% year-on-year growth. This increase showcases its ability to capture consumer interest effectively. Overall sales reached 7.77 lakh units, marking an 8% rise from 7.20 lakh units in FY 2022-23.
Additionally, their revenue from operations for FY 2022-23 stood at Rs 60,307.58 crore. This figure marked a considerable increase from Rs 47,378.43 crore in FY 2021-22. Furthermore, the company reported a consolidated net profit of Rs 4,709.25 crore, showcasing a remarkable growth of 62.3% from the previous fiscal year. These impressive figures underline its resilience and commitment to maintaining a strong presence in the competitive automotive landscape.
Conclusion
In summary, Hyundai Motor India has established itself as a formidable player in the automotive sector. From pioneering export achievements to a strong dealer network, it continues to thrive. Looking ahead, the company aims to expand its electric vehicle lineup and enhance sustainability initiatives. What are your thoughts on their impact on the industry? Explore Hyundai’s latest offerings and see how they redefine mobility in India. Hyundai India remains dedicated to innovation and customer satisfaction.
