Between FY26 and FY30, Hyundai will expand its India lineup from 14 to 18 models, led by SUVs and EVs. The plan includes India’s first locally built dedicated electric SUV and the debut of its luxury brand, Genesis, by 2027.
27 Oct 2025 | 4974 Views | By Prerna Lidhoo & Ketan Thakkar
On a sunny October morning in Mumbai, as Hyundai Motor India’s top brass gathered before a packed hall of investors and industry watchers for its first Investor Day, one message was clear: India, which once an outpost in Hyundai’s global map, is now the very heart of its future strategy. ...
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On a sunny October morning in Mumbai, as Hyundai Motor India’s top brass gathered before a packed hall of investors and industry watchers for its first Investor Day, one message was clear: India, which once an outpost in Hyundai’s global map, is now the very heart of its future strategy. For a company that helped define India’s middle-class aspirations, Hyundai’s story has always been about timing.
The right car, the right market, the right moment. But today, nearly 30 years after the first Santro rolled out, the stakes could not have been any higher. Growth has slowed, competition is fiercer, and the mobility landscape is shifting fast but the South Korean automaker is gearing up for its most ambitious chapter yet, one that could see India become Hyundai’s second-largest market worldwide by 2030, next only to its home turf.
The company, which has seen its growth pace slow in recent years, is now preparing to rev up operations with a 7% compound annual growth rate (CAGR) through FY30. India will contribute nearly 15% to Hyundai Motor Company’s global sales, strengthening its position as a key pillar in the brand’s international portfolio. At the heart of this transformation lies a record ₹45,000-crore investment through FY30, Hyundai’s biggest commitment yet to the Indian market.
The plan outlines a sweeping blueprint anchored in India-centric products, advanced manufacturing, and sustainable mobility. “Following our landmark IPO last year and 29 years of success in India, now HMIL plans an investment of ₹45,000 crores through FY2030 to drive the next phase of growth. India is a strategic priority in Hyundai’s global growth vision.
By 2030, HMIL will be our second-largest region globally. We’re making India a global export hub, targeting up to 30% export contribution,” said José Muñoz, President & CEO, Hyundai Motor Company and Hyundai Motor North America. HMC is putting India at the very heart of its global ambitions. From production and exports to electrification and a wave of new product launches, India isn’t just important to Hyundai’s strategy, it is Hyundai’s strategy, said Muñoz.
To deliver on that vision, Hyundai is preparing a product blitz like never before: 26 new launches between FY26 and FY30, including seven brand-new models, six full model changes, six derivatives, and seven facelifts or refreshes. The roadmap will expand Hyundai’s portfolio from 14 to 18 nameplates, dominated by SUVs, crossovers, and electrified vehicles. Among them will be India’s first locally manufactured dedicated electric SUV by 2027, and the much-anticipated entry of Hyundai’s luxury marque, Genesis, in the same year.
“Our robust investment plans reflect HMIL’s strategic expansion and our vision to deliver smart mobility solutions enriched with worldclass products and cutting-edge technologies for India’s aspiring and fast-growing customer base,” said Unsoo Kim, Managing Director, HMIL. “As we chart this growth trajectory, we are targeting a revenue milestone of ₹1 lakh crore by FY2030, while sustaining strong doubledigit EBITDA margins. Most importantly, we remain deeply committed to creating long-term value for our shareholders by announcing a healthy dividend payout guidance of 20–40%.”
The strategy, as Tarun Garg, Whole-time Director & COO, HMIL, put it, is clear: “Through this transformative 2030 roadmap, HMIL sets out to achieve 15%+ market share in domestic presence in high-growth SUV segment driven by robust product strategy and customer-centric approach,” said Garg, who will soon take over as the MD and CEO of the company. By 2030, Hyundai expects over 80% of its sales to come from utility vehicles, and more than half from eco-friendly powertrains. HMI’s roadmap is ambitious. The company plans India-centric products, export capabilities, and supply chain localization.
It is strengthening EV infrastructure and ecosystem development, expanding its dealer network, entering capital markets, and exploring new partnerships and business avenues. “These comprehensive investments, aligned with Make in India, position HMI as both a domestic leader and a global export hub. The story is very clear,” Muñoz said. Financially, HMI aims for 1.5x revenue growth by 2030, backed by a disciplined approach to execution and profitability, alongside a dividend payout guidance of 20–40%. “We remain deeply committed to creating long-term value through discipline, execution, sustained profitability, and our healthy dividend payout guidance,” Muñoz adds.
Overdependence on the Creta?
Hyundai’s Creta, the country’s No. 1 midsize SUV, continues to carry the brand on its shoulders. In April– September 2025, it sold 99,335 units, even as demand slowed for the other five models in Hyundai’s SUV portfolio. In the first half of the current fiscal year (H1 FY26), the Creta accounted for 36% of Hyundai Motor India’s SUV wholesales, making it the sole model in the six-SUV line-up to register a year-on-year sales increase. Overall, Hyundai’s SUV sales in H1 FY26 fell 7% YoY. Over the past six months, the Creta’s share of Hyundai SUV sales has risen from 47% to 52%, underlining how heavily the company relies on its midsize bestseller to drive its SUV portfolio.
"Hyundai’s India portfolio is showing signs of fatigue. With competition intensifying, overdependence on Creta remains a structural vulnerability. A C-segment SUV positioned above Creta is urgently needed—not just to defend share and elevate brand perception, but also to offer a natural upgrade path for Creta loyalists seeking more premium features and road presence. They may also need a sub-4m crossover to compete with recent volume pullers like Punch and Fronx—both have reshaped entry SUV dynamics. I believe their entry into the MPV and off-road segments is also quite delayed, especially as rivals scale aggressively in these high-margin niches." Gaurav Vaangal, Associate Director at S&P Global Mobility said.
According to Vaangal, there is still room for more products, regardless of what’s been announced so far. "The number of truly incremental nameplates remains limited i:e 4. Their volume ambitions seem too good to be true unless backed by a strong export strategy. India can play a strategic role as the last person standing on ICE, potentially becoming an ICE export hub. Hyundai has mentioned they’ll outgrow the market by 2030. That will be very difficult to achieve," he adds.
As SUVs and MPVs surge in popularity across India, Hyundai Motor India is gearing up to command a dominant presence in the booming utility vehicle segment. The combined penetration of these body styles is projected to reach 72% of total passenger vehicle sales by FY30, and Hyundai is aiming for a 82% share within this segment. The automaker already enjoys a strong foothold: in FY24-25, SUVs accounted for 68.5% of its domestic sales, up from 63.2% a year earlier, reflecting both market trends and the brand’s strategic alignment with consumer preferences.
Among the new introductions are India’s first locally manufactured dedicated electric SUV in 2027, a brandnew MPV, and an off-road SUV, allowing Hyundai to expand into family-oriented and adventure-ready vehicle segments. The upcoming MPV is Hyundai’s first foray into India’s high-volume family segment, currently dominated by competitors like Maruti Suzuki and Kia, while the offroad SUV caters to rising consumer demand for lifestyle and adventure vehicles.
Hybrid and EV Strategy
In contrast to its earlier push for EVs as an alternate fuel strategy, Hyundai Motor India is now steering its product strategy toward a hybrid future as well, with plans to launch eight hybrid models by 2030. Having historically focused on internal combustion (ICE), CNG, and battery electric vehicles (BEVs), the automaker is now placing a significant bet on the hybrid segment, aiming for hybrids to make up 16% of its total product mix. By decade’s end, Hyundai aims for a 52% eco-friendly portfolio, reflecting its aggressive pivot toward electrification. The timing aligns with India’s evolving regulatory environment.
The government’s revised draft of the third iteration of Corporate Average Fuel Economy (CAFE) norms is pushing for stricter average CO2 emissions, giving hybrids — alongside EVs — a crucial role in the country’s future mobility mix. By 2030, Hyundai plans to expand its SUV and MPV lineup from 14 to 18 nameplates, including 13 ICE models, five BEVs, and six CNG variants, with hybrids forming a significant slice of the portfolio. Profitability is a key driver of this strategy. According to Muñoz, at the moment, ICE models remain the most profitable and hybrids are also highly profitable.
“In markets where we already compete with hybrids, their profitability is equal to or even higher [than conventional powertrains]. Our hybrid technologies are very strong, and as the segment grows, we expect to see an interesting evolution in profitability.” Muñoz added that as production volumes scale and technology improves, hybrid profitability will rise further, reinforced by R&D efforts to reduce costs and enhance performance.
While hybrids are emerging as a major profit driver, battery electric vehicles (BEVs) currently deliver lower margins across the industry, and in some cases remain loss-making. Hyundai, however, is confident this will change as volumes grow and cost efficiencies from shared platforms, technologies, and sourcing begin to take effect. “Today, everybody knows battery EVs are less profitable, and in some cases are loss-making for some competitors,” Muñoz said.
“We’ve been working very hard to ensure that our fundamentals are such that we are profitable with battery EVs.” Hyundai currently sells the Creta EV and IONIQ 5 in India and plans to launch its first fully locally designed, engineered, and manufactured electric SUV in 2027, with a goal of five EVs in its portfolio by 2030.
“I think this is going to give us strong fundamentals to sustain the double-digit profits and the high returns that we have announced to our shareholders. We don’t see EVs as stand-alone, but we see it in combination with other technologies like REV, like hybrid or even plug-in hybrid,” Muñoz said, adding that both hybrids and electrified vehicles will play a crucial role in the company’s India strategy.
Experts say that after betting on EVs for a few years and looking at lower than expected pace of growth, companies are now opening up to hybrid as a transition technology. “Despite every kind of benefit given to EV customers, be it charging, GST, PLI schemes, income tax benefits, etc.
"Despite every kind of benefit given to EV customers—charging infra, GST cuts, PLI schemes, income tax benefits—penetration is still not growing fast enough. Hybrid as a transition route cannot be skipped. The market is not ready for a full-blown EV shift at this point." Vaangal said.
India as an EV Hub
"Without a doubt, India not only could be, but is going to be definitely one of the most, if not the most, competitive EV hubs in the world,” Munoz said. Hyundai sees India’s local supply chain as critical to scaling EV production and exports. “If we set up a very strong local supply chain for EVs, with the best battery technology, the best safety, the best performance, the best quality… there is no doubt that India will be a top hub of EV globally,” Muñoz said.
Strong infrastructure and reliable electricity are equally crucial. “If the policy allows for India to provide enough power so that people can recharge the vehicles without a problem, I don’t think there is any doubt that India will be a top hub of EV globally.” The company says its creating the EV ecosystem to make ownership practical. Its “Electrifying India – 360° Holistic Approach” includes over 600 DC fast charging stations by 2032, spanning highways and key cities.
Currently, the company operates 125 DC stations across 98 cities and 946 AC chargers across 232 cities. A smart home charging solution with 11 kW AC capacity, remote scheduling, and fast-charging capability complements this network. Hyundai’s EV strategy in India is structured in two strategic phases. Phase 1 focuses on local assembly at the Chennai plant, which includes the launch of the Creta EV, supported by a flexible battery manufacturing facility to establish a foothold in the electric mobility space.
Phase 2 emphasizes deep localisation of the EV supply chain, encompassing high-technology e-powertrain components and the local sourcing of battery cells, reinforcing Hyundai’s commitment to building a selfreliant, cost-competitive, and future-ready EV ecosystem in India. By 2030, Hyundai plans five EVs, eight hybrids, and 26 new launches overall, with over 50% of the portfolio eco-friendly.
Key launches include the first fully locally designed, engineered, and manufactured electric SUV by 2027, marking India as a hub for sustainable mobility solutions. Hyundai is also targeting mass-market EVs, with a compact electric SUV (codenamed HE1i) set to challenge Tata’s Punch EV in 2026. Based on the Inster EV, it will feature 42 kWh and 49 kWh battery options, 300–355 km WLTP range and localised production at Sriperumbudur in Tamil Nadu.
Together with the Creta EV, these models are expected to produce around 90,000 units annually, with a significant share for exports. Between 2025 and 2030, Hyundai projects BEV SUV growth of 500%, hybrid SUV growth of 600%, hybrid cars by 2,300%, and MPV EVs by 15,000%, even as ICE vehicles continue contributing nearly half of the profits.
Localisation and Exports
The company’s supplier clustering strategy around its Chennai and Pune plants is central to its localisation approach. At Chennai, 60% of vendors are located nearby, comprising 197 Tier 1 partners—85% rated 4-star or above— and 1,058 Tier 2 vendors, with 82% SQ-certified. The proximity advantage allows 93% of parts to be delivered within four hours, enabling a just-in-time supply model while maintaining strict quality standards, the company said.
Hyundai’s localisation push is not just about cost efficiency, but also technological advancement. “With enhanced automation and digitalisation at Pune, we are building a future-ready manufacturing base capable of supporting India’s evolving automotive landscape, while improving competitiveness and supply chain resilience,” the company said.
Since 2014, Chennai operations alone have delivered forex savings exceeding ₹5,300 crore, alongside technology transfers and joint ventures with over 10 partners, creating 1,400 direct jobs. Hyundai is also doubling down on India as a strategic export hub, with the goal of having 30% of production destined for overseas markets by 2030. “India is our export hub. As the number one cumulative automobile exporter in India, HMI aims to grow exports to 30% of total production, strengthening our global footprint,” said Muñoz.