Hyundai India bets big on premium cars and EVs on course to world’s largest IPO
Subscribe to enjoy similar stories. Mumbai: Hyundai Motor India will continue to focus on premium vehicles across traditional, electric and hybrid models that bring higher margins, the company’s management said as they formally announced the world’s largest public offering so far this year. India’s second-largest carmaker will have access to all propulsion technologies, including electric and hybrid, through its parent in Korea (Hyundai Motor Co.), they said.
“The Indian customer is evolving. We believe that the customer does not want to compromise now," Tarun Garg, the chief operating officer of Hyundai Motor India, told Mint in an interview. “Even (if you see) the first-time buyer behavior, everybody is trying to really move to cars which have design, which have technology, which have space, which have safety, and this is where we want to be." The company’s average selling price increased from ₹4.9 lakh in FY19 to ₹6.6 lakh in FY23, growing at a compound annual rate of 7.6%.
Hyundai attributed this to a mix of premiumization and a general increase in car prices. During this period, it phased out its most affordable cars in India—Eon and Santro. Also read | Hyundai's journey in India has been through SUVs This bodes well for Hyundai as an evolving generation of car buyers seeks advanced features, technology, styling and larger space over regular hatchbacks.
“The preference of Indian car buyers has consistently been shifting from hatchbacks towards SUVs (sports utility vehicles)," said Gaurav Vangaal, associate director at S&P Global. “Today, Indian buyers are spoilt for choice, and they seek multiple powertrain options on every car. The differentiator for carmakers will be how many powertrain options they can provide,"
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