Hyundai Motor plans to launch 46 new vehicles in China and India over the next five years, as it ramps up efforts to diversify its global footprint beyond the tariff-hit US and sluggish European markets.
According to media reports Sunday, Hyundai Motor Co. CEO Jose Munoz stated in a recent shareholder letter that the company will roll out 20 car models in China and 26 in India by 2030. This marks a 2.6-fold increase from the 18 models launched in the two markets over the past five years.
With the new targets, Hyundai aims to raise combined sales in China (444,000 units) and India (832,500 units) to 1.28 million units in the same period. Compared to the two markets’ total sales of about 702,000 vehicles last year, the average annual growth rate would be roughly set at 12.7 percent.
If achieved, China and India would account for 23 percent of Hyundai’s global sales, up from 17 percent last year. On the other hand, sources say the share of North America and Europe — the carmaker’s key markets — is expected to decline from 43.7 percent in 2025 to approximately 41 percent.
Munoz said Hyundai will further accelerate its “In China, for China, to the world” localization strategy. As part of this effort, the company last year unveiled Elexio, an electric SUV developed primarily by its China-based R&D center as its first market-specific model.
Built on Hyundai Motor’s E-GMP electric vehicle platform, Elexio has boosted price competitiveness through a localized supply chain, including lithium iron phosphate batteries. However, the model has gained little traction, selling just 569 vehicles in the four months after its launch in October last year.
For the Indian market, the automaker aims to introduce an electric SUV developed and manufactured entirely within the country as early as next year, while also considering the debut of its premium brand Genesis. At the group level, Hyundai and Kia have already built an annual production capacity of 1.5 million vehicles in the country, supported by four plants in Chennai, Anantapur and Pune.
Industry watchers say Hyundai’s strategic pivot reflects mounting uncertainty in its key markets. In the US, high auto tariffs — currently set at 15 percent — have eroded profitability, costing about 4.1 trillion won ($2.7 billion) last year and contributing to a 19.5 percent drop in operating profit. The elimination of EV consumer tax credits under the Inflation Reduction Act has further dampened demand.
In Europe, Hyundai faces intensifying competition from Chinese automakers such as BYD, SAIC Motor and Volvo Cars. The combined market share of Hyundai and Kia decreased to 7.9 percent last year, while sales fell 2 percent to 1.04 million units, marking a second consecutive annual decline.
hyejin2@heraldcorp.com
