“We Would Like India to Become a Global Hub for Both ICE and Electric Vehicles”: HMC CEO José Muñoz

José Muñoz, President and CEO of Hyundai Motor Company (HMC), laid out the company’s flexible approach to technology and its long-term vision for India, underscoring the country’s centrality to Hyundai’s global strategy. “I think we are one of the most flexible global OEMs in terms of technologies. Some companies have gone electric, some companies have gone hybrid. Very few companies have gone like us… ICE as we’re still able to produce diesel. We have hybrid, we have plug-in hybrid, we have mild hybrid, we have EV, we even have fuel cell EV. Our intention is not to force the customers to our technology, but to adjust to their needs,” José Muñoz, President and CEO of Hyundai Motor Company (HMC), said.

He emphasized that India could play a dual role as a hub for both electric and internal combustion engine (ICE) vehicles. “We want India to be a hub for EVs, but we also would like India to become an ICE hub. Because the markets that require ICE, we will have to limit the places where we are producing them. Then, why not? India could be the export hub,” he said.

Muñoz added that Hyundai sees India as more than just another market. “India is not part of the Hyundai strategy. India is the strategy itself. So, by being strong here, we are a strong OEM. This is not an afterthought, this is not a plan. This is the strategy itself,” he added.

Acknowledging the challenges of the Indian market, he said, “A lot of OEMs that are very strong in many other markets, they’re struggling in India. Because it’s very demanding, very competitive. Well, we want to be stronger. We’ve been here earlier than all of them. We want to capitalize on our consumer base.”

Looking ahead, Hyundai plans for ICE vehicles to remain a significant part of its powertrain mix. “By FY30, ICE will be 47% of our powertrain mix,” Muñoz said, signaling the company’s continued commitment to traditional engines alongside electrification.

A Flexible Approach to Electrification

“Some years ago, a lot of OEMs, including ourselves, thought the shift to electrification was going to be the definite evolution into this market. But we soon realized that it takes some time for the consumer to be able to buy. There is no charging working. I cannot ask you to change and then you realize there’s some inconvenience until the infrastructure is developed,” he said.

He noted that consumer behavior often favors hybrids over full battery-electric vehicles due to cost and convenience. Muñoz highlighted the role of cost in consumer choices, noting that large EVs are generally more expensive than comparable hybrids or conventional cars due to battery costs.

“In our case, we remain very flexible and do not impose what customers should drive. We adapt to their preferences. If customers demand more EVs, we will produce more EVs; if they prefer hybrids, we will make more hybrids. In Europe, for example, the demand for EVs is higher due to regulatory requirements,” he explained.

The company projects that electrified vehicles including BEVs, hybrids, and ERVs will make up about 55% of its sales mix in India by 2030.