Hyundai Motor India is positioning itself as a crucial manufacturing hub for emerging markets such as Africa and neighboring nations. As the company diversifies its export markets, it faces challenges related to shipments to regions like the Middle East, impacted by geopolitical issues such as the Red Sea crisis.
Unsoo Kim, Managing Director of Hyundai Motor India, shared the company’s strategy with PTI, stating, “We are positioning the company as a production hub for emerging markets. We are manufacturing and exporting our cost-optimized vehicles to these markets.”
Balancing Domestic And Export Volumes
Kim emphasized that Hyundai maintains a balanced mix of domestic and export volumes, which not only ensures strong profits but also provides a natural hedge against market fluctuations. “We have a very suitable product lineup for emerging markets,” he added, highlighting Hyundai’s adaptability to regional needs.
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The company has seen growth across several regions, including Africa, Mexico, and Latin America, as it continues to expand its footprint globally.
Challenges In The Middle East And Future Strategy
Despite overall growth, Hyundai continues to face challenges in the Middle East due to the ongoing Red Sea crisis. Kim acknowledged these headwinds but reassured that the company is closely monitoring the situation and is focusing on mitigating risks by strengthening its presence in other regions.
Additionally, Hyundai plans to enhance its exports to neighboring countries like Nepal, Bangladesh, Bhutan, and Sri Lanka. Kim expressed confidence in the company’s future strategy, stating, “Going forward, we expect stability in our export volumes. With access to the export ecosystem of HMC, we will continue to explore opportunities in other emerging markets and deliver exciting products.”
Export Performance And Milestones
In the October-December quarter of the current fiscal year, Hyundai exported 40,386 vehicles, slightly down from 43,650 vehicles during the same period last year. However, the company has experienced strong growth in markets like Saudi Arabia, South Africa, Mexico, Chile, and Peru, which emerged as its largest export markets by volume in 2024.
In calendar year 2024, Hyundai Motor India exported a total of 158,686 vehicles. The company marked a significant milestone this month, celebrating 25 years of exports from India. Since commencing exports in 1999, Hyundai has exported over 3.7 million passenger vehicles to more than 150 nations worldwide, currently reaching over 60 countries.
Looking Ahead: Expanding The Export Hub
Looking forward, Hyundai aspires to become the largest export hub for the brand outside of South Korea. Kim concluded, “Aiming to become the largest export hub for Hyundai outside South Korea, we aspire to continue our growth trajectory in the coming years.”
With its ongoing expansion into emerging markets and a strong foundation in export volumes, Hyundai Motor India is set to solidify its position as a key player in the global automotive market.
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