Hyundai shifts focus to China and India to reduce US reliance

By Alimat Aliyeva

Hyundai Motor is accelerating efforts to diversify its sales networks with tailored market strategies for China and India, amid ongoing global uncertainties — including the potential imposition of auto tariffs in the United States, Azernews reports, citing Korean media.

Beijing Hyundai Motor Company (BHMC), Hyundai’s joint venture in China, began taking preorders on Thursday for its new compact electric SUV, the Elexio, according to industry sources.

Similar in size to the Kia EV5, the Elexio measures 4.615 meters (about 15.1 feet) in length and 1.875 meters (6.15 feet) in width. It is powered by lithium iron phosphate (LFP) batteries supplied by Chinese automaker BYD, offering an impressive maximum range of 722 kilometers (449 miles) on a single charge, based on Chinese certification standards.

The Elexio was developed and manufactured entirely in China. It features design elements tailored specifically for Chinese consumers — notably incorporating the number eight, a symbol of good luck in China, into its daytime running lights. The interior boasts a large 27-inch wide infotainment display, catering to local preferences for advanced in-car technology.

Beijing Hyundai priced the Elexio between 130,000 yuan ($18,240) and 150,000 yuan, roughly matching the local price of the Kia EV5, which stands at 149,800 yuan.

The company plans to launch six China-exclusive electric vehicles by 2027, starting with a new compact electric sedan next year, as part of a localization strategy aimed at reclaiming lost market share.

China remains the world’s largest auto market, with 31.44 million vehicles sold last year — nearly double the 15.9 million units sold in the United States.

However, Hyundai Motor Group’s sales in China have plummeted since the 2017 THAAD missile defense controversy, with combined sales of Hyundai and Kia dropping to just 204,573 units last year, accounting for a mere 0.65 percent market share. This contrasts sharply with 2016, before the fallout, when the group sold 1.14 million units and held nearly 4 percent of the market.

“Hyundai likely believes that recovering even half of its pre-THAAD market share would translate into over 600,000 units sold annually,” said Cho Chuel, senior research fellow at the Korea Institute for Industrial Economics and Trade. “However, local startups have flooded the market with sub-premium EVs, so competition will be intense.”

Hyundai is also doubling down on its India operations. On Wednesday, the company held an investor day in Mumbai, announcing plans to invest $5.1 billion in India by 2030.

This investment will be directed toward modernizing local production facilities and boosting R&D for market-specific models. Hyundai aims to launch eight hybrid SUVs and five electric vehicles by 2030.

In 2027, Hyundai will introduce an India-exclusive Genesis model to tap into the country’s rapidly growing premium car segment. The company plans to expand production capacity by leveraging its plants in Pune (250,000 units annually), Chennai (760,000 units), and Kia’s Anantapur plant (350,000 units), targeting a combined annual capacity of 1.4 million vehicles within a few years.

To spearhead this effort, Hyundai will appoint Tarun Garg, currently COO of Hyundai India, as its new CEO starting in January — marking the first Indian national to hold the position since the subsidiary was founded in 1996.

India was the world’s third-largest auto market last year, with 5.23 million vehicles sold. Hyundai sold about 610,000 units, capturing an 11.6 percent market share. The company aims to increase this share to 15 percent by 2030.

“There’s no need to chase market share blindly. Sustainable, profitable growth is more important,” said Hyundai Motor President Jose Muñoz during the India investor day.

“The plan is to respond to India’s expanding premium auto market with Genesis,” said Kwon Yong-joo, professor of automotive transport design at Kookmin University.

Meanwhile, Hyundai also opened an experiential showroom in Tokyo earlier this month. It plans to target Japan’s compact EV segment with its small electric vehicle Casper, marketed locally as the Inster. However, Hyundai’s presence in Japan remains minimal — only 759 units were sold from January to September this year.

“With rising uncertainty in the U.S. market, Hyundai is working to reduce its reliance on American sales by strengthening its networks in Asia and other regions,” said Lee Hang-koo, adviser at the Korea Automotive Technology Institute. “However, increased local production in key markets like the U.S., China, and India may affect output at domestic plants.”