Hyundai Betting Big On Creta EV Despite Global Slowdown; Here's Why - MD Unsoo Kim Answers

As the global automotive industry faces challenges from economic slowdown and fluctuating demand, Hyundai Motor Company is doubling down on its electric vehicle (EV) strategy in the Indian market. Building on the success of its bestselling Creta, Hyundai Motor India Limited (HMIL is gearing up to leverage its stronghold in the Sports Utility Vehicle (SUV) segment to boost its volumes in its battery electric vehicle (BEV) portfolio in India.

According to Unsoo Kim, MD, India is in the early stage of electrification and currently the market penetration is 2.5 percent which rise further in the coming years.  He 
"Indian government has a very strong initiative for electrification with customers availaing the GST benefits. Also, the government is promoting some PLI scheme to OEMs. And then all Indian OEM are announcing their EV product in the near future, said Unsoo Kim on the sidelines of launching Hyundai Creta Electric at the Bharat Mobility Expo.

The Creta EV, positioned as a mid-range electric SUV, will play a pivotal role in achieving Hyundai’s goal of capturing a significant share of India’s growing EV market, according to the MD. He also stated that the government is also investing in infrastructure for charging infrastructure system. 
"Due to these factors, the Indian EV market will dramatically grow up to 20 percent (of overall PV sales). Once the battery prices come down, customers will find EVs reasonbly priced. So we are seeing that that has happened, added Kim.

Creta EV: A Strategic Push in the EV Market

The Creta has been a cornerstone of Hyundai's success in India, consistently ranking among the top-selling SUVs. By the launching its electric variant at a starting Rs 17.99 lakh, Hyundai aims to tap into the growing demand for eco-friendly vehicles while capitalizing on the model’s immense popularity.

According to Tarun Garg, COO, the introduction of this model could be the tipping point for India’s EV sales growth this year. In the mid to long term, the company is eyeing a market share of over 14 percent in the EV segment owing to future launches.

“We think that 2025 and 2026 will be the trigger years where the volume jumps and Creta EV could be an enabler to happen,” stated. He reasoned that when Hyundai launched the Creta in 2015, SUVs made up just 13 percent of the overall market. 

Garg revealed that Hyundai has sold nearly 190,000 units of Creta last year, marking an 18% growth and has dispatched 1.1 millions of this ICE SUV till date. In his view, "When a big transformation like ICE to EV is happening, customers are looking for reliability. We are confident that Creta Electric will be a big trigger for customers to really see and buy it for a strong brand, a strong product, a great technology, charging infrastructure, and, of course the great price.”  

Garg believes the Creta Electric could have a similar impact on the EV sector, with the electric vehicle market potentially doubling by 2026.

Boosting Hyundai’s BEV Sales in India

Meanwhile, Hyundai India revealed that it has already laid the groundwork for its EV expansion, with models like the Kona Electric (now phased out) and the recently launched Ioniq 5 catering to premium segments. However, the Creta EV will mark Hyundai’s entry into the more accessible mass-market EV space.

Without sharing any sales target of Creta, Garg maintained, "Exact numbers will be very difficult to give, but I think the (lower) GST really helps us to price it right. At the same time, from a Hyundai perspective, we are looking at localization. Before the Creta EV was launched, the battery packs have already been localized. Going forward, we are looking at battery cell as well."
It has already inked a tech collaboration with Exide Industries for battery cells. "So that will really help us to bring the cost down for our future EV models. And then of course the power electronics and the drivetrain as well, we are looking at localization.

Hyundai Motor India has announced plans to launch six EVs in India by 2028, with a combined investment of Rs 4,000 crore.