Hyundai India Predicts Strong Growth in Indian EV Market Through 2030, Plans Creta EV Launch
NEWSINVESTMENTEV
10/12/20242 min read


Hyundai Motor India Ltd (HMIL) anticipates robust growth in India's electric vehicle (EV) market through 2030, driven by government initiatives and an increasing focus from automakers. Speaking on Friday, Unsoo Kim, Managing Director of HMIL, expressed optimism about the EV market despite recent declines in sales. In September, EV sales in India saw an 8% year-on-year drop, with 5,874 units sold, according to data from the Federation of Automobile Dealers Associations (FADA). However, Kim remains confident in the long-term outlook.
Tarun Garg, Chief Operating Officer (COO) of HMIL, revealed that the company will launch its first high-volume EV, the Creta EV, in the last quarter of the current financial year. He described the upcoming model as a potential "game changer" that could significantly boost consumer confidence in electric vehicles. "A high-volume EV from Hyundai will show customers that electric is the future," Garg emphasized.
In addition to its EV plans, HMIL has also announced India’s largest-ever initial public offering (IPO), valued at Rs 27,780 crore, with bids set to open between October 15 and 17. According to the company’s pre-IPO red herring prospectus (RHP), HMIL's royalty payments to its parent company, Hyundai Motor Corporation (HMC), stand at 3.5% of sales revenue. HMIL’s Chief Financial Officer (CFO) Wangdo Hur assured that the royalty rate will remain steady for an extended period unless changes are made to the Organisation for Economic Co-operation and Development (OECD) guidelines on transfer pricing. These guidelines ensure that royalty rates reflect what independent parties would agree upon under similar conditions.
Kim noted that India is still in the "early stage of electrification," but he believes that the market will see steady and strong growth over the next decade. "The Indian EV market is expected to grow strongly and steadily by 2030, led by the government’s strong leadership and many OEMs focusing on this segment," Kim said. He highlighted Hyundai's access to global battery technology and its commitment to developing a comprehensive EV ecosystem in India. HMIL plans to launch four new EV models, starting with the Creta EV.
Garg added that the Creta brand has already transformed India’s SUV market since its launch in 2015. Back then, SUVs accounted for just 13% of the overall car sales, compared to around 60% today. He expects the Creta EV to have a similar impact on the EV market. "India is still at a low level of electrification, and the only direction from here is up," Garg concluded, urging optimism despite the current slowdown in global EV sales.
Contact us
info@evspectrum.com
+91 7575054589