New Delhi: As part of broadening its product portfolio towards clean fuel technologies, Hyundai Motor India Limited (HMIL) is considering options to go beyond ICE (petrol and diesel) and electric powertrains.
This move is critical, as the passenger vehicle industry in India remains divided between adopting a direct electric vehicle (EV) approach or transitioning through hybrids before fully embracing electrification. Japanese OEMs like Maruti Suzuki, Toyota Kirloskar, and Honda Cars are currently selling hybrid models, while most other manufacturers are offering battery electric vehicles (BEVs) in the market.
“We are focused on diversifying our product portfolio. Along with the exciting lineup of EVs and ICE models, we will also look to explore opportunities in the alternative powertrains,” Unsoo Kim, Managing Director, Hyundai Motor India said on Tuesday.
He stated that the carmaker has access to a range of powertrain technologies, including hybrid, hydrogen, and flex-fuel systems, through its parent company, Hyundai Motor Company (HMC).
“We are well placed to adapt to a change in demand dynamics and regulatory environment. These efforts will position us as a key player in both the domestic and export markets,” Kim added.
At the Bharat Mobility Global Expo 2025, Hyundai presented the Creta 1.0 Turbo petrol, which can also run on pure E100 ethanol. However, the company did not announce any plans to launch it for the Indian market.
Last year, HMC unveiled a new hydrogen-powered vehicle called Initium, which it aims to release in the first half of this year. It also offers the hydrogen-based SUV Nexo.
Electric Play
Hyundai recently launched its Creta Electric SUV which will be manufactured at the Chennai plant. Sharing his confidence in the new model, Kim said the auto major is looking to grab 20% share of the domestic electric passenger vehicles (ePVs) market in the mid to long term. Currently, Tata Motors is the market leader in this space.
Looking ahead, Kim expressed a “positive outlook” on the growing electrification in India, as Hyundai plans to launch three more EVs in the country. In line with the government’s ‘Make in India’ initiative, it is also looking to localise components like battery cells, drivetrain and power electronics.
The company has begun locally assembling battery packs in collaboration with Mobis India Limited at its newly inaugurated facility within the Chennai manufacturing plant.
While the current EV penetration in the passenger vehicle industry stands at about 2.5%, Hyundai sees 2025 as a trigger for the industry to double its penetration by 2026.
Oct-Dec 2024 performance
HMIL reported a decline of 19% in its consolidated profit after tax (PAT) to INR 1,161 crore for Q3 FY25. The company had reported a PAT of INR 1,425 crore in Q3 FY24. Total revenue from operations decreased to INR 16,648 crore in the third quarter when compared to INR 16,875 crore in the year-ago period. However, the company has attributed this decline in margins to “subdued demand & geo-political factors”.
Hyundai sold a total of 1.86 lakh units of passenger vehicles during the quarter under review, marking a drop of 2% as against 1.90 lakh units in the same period of last fiscal. For CY2024, SUVs contributed to 68% of the total domestic sales for the company.
Its new plant in Pune will commence operations by the end of this year, with 1.70 lakh units capacity in phase-1, followed by 80,000 units in phase-2.
The automaker expects the PV industry in India to clock a low single digit growth during FY25, owing to macro economic challenges, high base of last year and no significant recovery in urban demand. “Barring the festive period, the overall market sentiment is weak. The demand is currently mostly driven by high discounting from many of the OEMs.”
Exports Dip
The Red Sea crisis in the Middle East and the geopolitical instability in Latin America impacted the company’s export volumes during the October-December quarter. To compensate for this, Kim said Hyundai has increased its exports to other regions like Africa, supported by additional discounts.
