Hyundai Motor India expects SUV sales to account for 65 per cent of its overall volumes in 2024, while it gears up to enter the EV segment early next year, aiming to garner 20 per cent of its total sales by 2030, its COO Tarun Garg said on Tuesday.
The automaker, which got around 60 per cent of its overall volumes from sports utility vehicle (SUV) sales last year, plans to invest Rs 7,000 crore on its second plant at Talegaon, according to Maharashtra Deputy Chief Minister Devendra Fadnavis.
The company officials however declined to comment on the matter.
“Last year, SUVs accounted for 60 per cent of our total volumes.
“This year, we expect it to touch the 65 per cent mark,” Garg told PTI in an interaction.
He noted that in 2015, the SUV segment used to account for just around 13 per cent of the overall domestic passenger vehicle sales.
The contribution has grown to 49 per cent in 2023, he added.
On Tuesday, the company strengthened its SUV portfolio with the introduction of the new version of its midsize SUV Creta priced between Rs 10.99 lakh and Rs 19.99 lakh (ex-showroom).
The company plans to commence production at the newly acquired manufacturing plant at Talegaon plant in Maharashtra next year, Garg said.
He noted that the company is expected to witness growth this year as well and the start of production at the Talegaon plant is going to play a significant role in catering to the growing customer demand.
“It’s a very important step for us to reach the 10 lakh production capacity,” Garg said.
Last year, Hyundai signed an asset purchase agreement to acquire and assign identified assets related to General Motors India’s Talegaon plant in Maharashtra.
When asked about the company’s EV plans, he said Hyundai is gearing up to launch mass market electric vehicles at multiple price points in India starting next year.
He noted that the government expects the EV penetration will be 30 per cent by 2030.
“We believe that the industry EV penetration will be 20 per cent and we would like Hyundai to be in line with that,” Garg stated.
The EVs will roll out from the company’s Chennai plant, he said.
“We have been working on setting up the entire ecosystem, including localisation of the battery packs in order to bring down the battery and overall costs,” Garg stated.
At present, Hyundai Motor India sells two EV models in India — IONIQ5 and KONA Electric priced around Rs 46 lakh and Rs 24 lakh (ex-showroom Delhi), respectively.
On the new Creta launch, he noted that the company sold 1.57 lakh units of the model last year and despite enhanced competition, the midsize SUV continues to lead the segment with a market share of 31 per cent.
“The new Creta with its commanding road presence, segment leading features, including advanced Level 2 ADAS safety suite, powerful 1.5L Turbo GDi engine and a gamut of convenience and active & passive safety features, is set to redefine the SUV landscape in India once again,” Hyundai Motor India MD & CEO Un Soo Kim said.
