Edited excerpts:
Q. After two consecutive years of record sales for the industry, what is your outlook for 2024?
Year 2023 has been a milestone year for HMI as the company revamped almost its entire model range with a slew of 11 big and small launches. We accomplished a historic feat by achieving the highest ever domestic sales in a calendar year, surpassing the six lakh sales milestone. HMIL also became the first OEM in the industry to standardize 6 airbags across all models and variants. SUVs continue to be an extremely strong growth driver for HMI, contributing to nearly 60% of our total sales against the industry contribution of 46-47%.
We at Hyundai, see the growth moving on an upward trajectory. As customers get diverse and dynamic, their needs and aspirations continue to evolve. The mission for 2024 is “Consistency and Sustainability” and to continue our journey by charting out a path that will define the future of mobility for India.
Q. What are the key micro and macro indicators that will help shape up the auto industry in 2024?
For 2024, the industry is not expected to witness exponential growth compared to the numbers for 2022 and 2023. The SUV trend continues to prevail in the industry. In 2024, we can expect the industry’s SUV share at 52% and HMI to go up to 65%. We are well-prepared to welcome CY24 on a positive note.
Multiple factors will play a role in paving the path for the Indian automobile industry in 2024. The adoption rate of electric vehicles (EVs) in India could be a key indicator in green mobility. Changes in government policies and regulations related to emissions, safety standards, and manufacturing incentives can also significantly impact the industry.
Innovations in automotive technology, including autonomous driving, connectivity, and advanced safety features, may further shape consumer preferences and industry competitiveness.
Changing consumer preferences, including a shift towards sustainable and eco-friendly options, will influence the types of vehicles in demand. Lastly, the overall economic conditions, including GDP growth, inflation, and interest rates, can impact consumer purchasing power and affect the automotive market.
Q. What do you think will be the rate of adoption of multiple fuel technologies and electric vehicles (EVs) in 2024?
While India has made progress in promoting EV adoption, there is still a long way to go. Several challenges like the lack of robust charging infrastructure, battery manufacturing, and limited choice of EV models, have all slowed down the growth of electric mobility.
Hyundai has committed 100 EV charging stations in the home state of Tamil Nadu. The company is developing fast public chargers across Mumbai, Pune and highways such as Delhi-Chandigarh, Mumbai-Surat, Hyderabad-Vijayawada and more. Hyundai is also equipping the dealerships with DC 60KW fast chargers at 14 key locations and also providing convenient home charging solutions for Ioniq 5 and Kona electric customers.
HMI has pledged an investment of INR 26,000 crore in Chennai towards capacity expansion, new products, and battery pack assembly unit.
Q. What will be the major technologies that will shape the next decade of the mobility industry?
The prominence of electric and hybrid vehicles in the market is a significant trend. Advancements in battery technology, charging infrastructure, and government incentives are expected to drive the adoption of EVs. Connectivity features are also becoming more prevalent.
Currently, Hyundai’s portfolio incorporates ADAS technology with 6 models, namely- the new Hyundai CRETA, Verna, Tucson, Venue, Venue N-Line, and Ioniq 5. The integration of these technologies is likely to shape the industry’s future, enhancing safety, sustainability, and overall driving experience.
Q. Do you think the Indian auto industry has the potential to become a global manufacturing hub and play an important role in the global value chain?
Hyundai Motor India expects India could be one of the biggest markets for Hyundai Motor Company (HMC) in the near future as demand for automobiles in India is expected to remain strong.
With the General Motor (GM) plant acquisition, HMI aims at reaching 1 million production milestone and further strengthening the hold in the industry. We are currently number three after the US and Korea market and we have ambition to be number one in the mid to long term.
Q. What are the key factors that work in favor of India and what limitations does it have as a country?
The increasing middle-class population and rising disposable incomes contribute to a growing demand for vehicles. India is known for cost-effective manufacturing, including skilled labor and competitive production costs. This makes it an attractive destination for automotive manufacturers looking to establish production facilities or outsource certain components. The Indian government has implemented various initiatives and policies to support the automotive sector. Programs like “Make in India” and incentives for electric vehicles demonstrate a commitment to fostering growth in the industry.
There are a few challenges when it comes to EVs in India, such as the charging infrastructure, range anxiety amongst customers and the cost of ownership for customers. However, India is moving towards an EV revolution.
The on-going efforts to improve road infrastructure, as well as the development of charging infrastructure for EVs, will also contribute to a more conducive environment for the automotive industry.
Q. What is your Vision 2030 for the automotive industry?
By 2030, there is an expectation of a significant increase in the adoption of EVs. As per our prediction, EVs will account for 22% of overall sales by 2030 in the industry.
Industry 4.0 technologies, such as IoT (Internet of Things), AI (Artificial Intelligence), and robotics may play a crucial role in the manufacturing processes, leading to increased efficiency and precision. Consumers may prioritize vehicles with advanced safety features, connected services, and personalized experiences.
The outlook of the automobile industry is subject to various factors, including technological advancements, market dynamics, regulatory changes, and societal trends. The Indian automobile industry’s evolution by 2030 will depend on how effectively it adapts to and navigates these challenges and opportunities.
