Hyundai plans 46-model expansion in China, India

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Hyundai Motor plans to release 46 new vehicles in China and India within the next five years, aiming to diversify its global market beyond the US and Europe. The company will launch 20 car models in China and 26 in India by 2030, a 2.6-fold increase from the 18 models launched in these two markets over the past five years. Hyundai’s goal is to raise combined sales in China and India to 1.28 million units in the same period, a move that would set an average annual growth rate of about 12.7%.

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Hyundai Motor Announces Plan to Launch 46 New Vehicles in China and India

Hyundai Motor recently revealed its ambitious plan to roll out 46 new vehicles in China and India within the next five years. This move is seen as a strategic step to diversify its global footprint, especially considering the tariff challenges in the US and stagnant European markets.

CEO’s Announcement and New Targets

Hyundai Motor Co.’s CEO, Jose Munoz, shared this strategy in a recent letter to shareholders. According to this plan, the company will introduce 20 new car models in China and 26 in India by 2030. This represents a significant boost of 2.6 times the 18 models that were launched in these two markets over the past five years.

Hyundai’s goal is to increase combined sales in China (444,000 units) and India (832,500 units) to 1.28 million units in the same timeframe. This would mean an average annual growth rate of approximately 12.7 percent, given that the total sales in these two markets last year were around 702,000 vehicles.

Expected Shift in Market Share

If these projections are met, China and India would comprise 23 percent of Hyundai’s global sales, an increase from the current 17 percent. This implies a potential decrease in the market share of North America and Europe — the current major markets for the carmaker — from 43.7 percent in 2025 to a predicted 41 percent.

Localization Strategy and Future Plans

Munoz highlighted Hyundai’s ongoing commitment to its “In China, for China, to the world” localization strategy. In line with this initiative, Hyundai unveiled the Elexio, an electric SUV developed primarily by its China-based R&D center in 2021. Despite its innovative localized supply chain, including lithium iron phosphate batteries, Elexio’s sales have been slow since its launch in October last year, with only 569 vehicles sold in the four months following.

For the Indian market, Hyundai plans to release an electric SUV developed and manufactured solely within India as early as 2023. Hyundai and its affiliate Kia already have an established annual production capacity of 1.5 million vehicles in India, backed by four manufacturing plants in Chennai, Anantapur, and Pune. The company is also mulling over the introduction of its luxury brand, Genesis, in India.

The Need for a Strategic Pivot

Industry observers suggest that Hyundai’s shift in strategy is in response to mounting uncertainties in its main markets. In the US, high auto tariffs, currently fixed at 15 percent, have eroded profitability, with a cost of approximately 4.1 trillion won ($2.7 billion) last year, leading to a 19.5 percent drop in operating profit. The elimination of EV consumer tax credits under the Inflation Reduction Act has also led to a decrease in demand.

In Europe, Hyundai is encountering fierce competition from Chinese automakers like BYD, SAIC Motor, and Volvo Cars. The combined market share of Hyundai and Kia dipped to 7.9 percent last year, with sales dropping by 2 percent to 1.04 million units — marking a second consecutive annual decline.

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