Hyundai Plans Product Expansion Following 26 Launches Over 5 Years

Korean automaker Hyundai is set to make a significant impact in the Indian automotive market by launching 26 new vehicles over the next five years. This ambitious plan comes as the company invests ₹7,000 crore this year to enhance its market presence amid increasing competition from domestic players like Mahindra & Mahindra and Tata Motors. The new lineup will feature a mix of internal combustion engine vehicles, electric models, and hybrid variants, as Hyundai aims to capture a larger share of the market.

Investment and New Product Launches

Hyundai’s commitment to the Indian market is underscored by its substantial investment of ₹7,000 crore for the current year. The company plans to introduce a diverse range of vehicles, including 20 internal combustion engine (ICE) models and six electric vehicles (EVs), along with strong hybrid variants. Tarun Garg, the Chief Operating Officer of Hyundai India, highlighted that the company is gearing up for a significant increase in market share by launching new products across various price points. This strategy aims to cater to a broader audience and strengthen Hyundai’s position in a competitive landscape.

The automaker is also set to commence production at its new plant in Talegaon, Maharashtra, which was acquired from General Motors. Garg emphasized that Hyundai is focused on balancing volume market share with profitability, steering clear of engaging in discount wars with competitors. The company aims to introduce eight new models by the fiscal year 2027, with a particular emphasis on SUVs, which are expected to be a major focus area.

Electrification and Localisation Efforts

Hyundai is making strides in the electric vehicle segment, planning to expand its localized offerings beyond the existing Ioniq and Creta EVs. The company is committed to enhancing its fast-charging network while increasing localization in its production processes. This move aligns with the growing demand for electric vehicles in India and reflects Hyundai’s strategy to stay ahead in the evolving automotive landscape.

Garg noted that the company is working aggressively to make its fast-charge network more accessible, which is crucial for supporting the adoption of electric vehicles. By localizing production and expanding its EV lineup, Hyundai aims to meet the needs of Indian consumers while contributing to the country’s sustainability goals.

Market Performance and Future Outlook

Despite facing challenges, Hyundai remains cautiously optimistic about the domestic market’s potential. The company’s sales in India saw a slight decline, with around six lakh units sold in the last fiscal year compared to 6.1 lakh units in FY24. Exports remained stable at approximately 1.6 lakh units in FY25. Unsoo Kim, Managing Director of Hyundai India, stated that the previous year demonstrated the company’s resilience through sustained revenues and healthy operating margins.

Looking ahead, Hyundai anticipates modest growth in domestic demand amid geopolitical uncertainties and shifting consumer sentiment. The company expects its domestic growth for FY26 to align with industry estimates of low-single-digit growth, while aiming for a more ambitious 7-8% growth in exports. This balanced approach reflects Hyundai’s commitment to navigating the challenges of the automotive market while continuing to innovate and expand its offerings.

Financial Performance and Profitability

In its recent financial report, Hyundai India revealed a 4% decline in consolidated net profit for the fourth quarter ending March 2025, amounting to ₹1,614 crore. This decrease was attributed to lower sales in the domestic market, compared to a profit of ₹1,677 crore in the same period the previous year. However, the company’s total revenue from operations increased to ₹17,940 crore, up from ₹17,671 crore year-on-year.

Hyundai’s operating margins stood at 14.1% for the January-March 2025 quarter, exceeding initial estimates. This performance highlights the company’s effective cost control measures and improved realizations, even in a challenging market environment. As Hyundai continues to invest in new products and technologies, it aims to strengthen its financial position while adapting to the evolving demands of the Indian automotive sector.

Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.

Follow Us on Twitter, Instagram, Facebook, & LinkedIn