Hyundai India aims for growth in rural areas, electric vehicle expansion, and introduction of 26 new models by 2030
Hyundai Expands Rural Market Reach in India with Focus on CNG Vehicles and Renewable Energy
Hyundai Motor India is making significant strides in expanding its presence in the rural market, particularly in the segment of CNG vehicles. The company's strategy is a multi-pronged approach that combines volume, value, and future-ready mobility.
In the financial year 2024-25, Hyundai's rural market penetration increased from 19.4% to 20.9%. Sales of CNG vehicles in the rural market saw a 33% year-on-year growth, reflecting a significant shift among rural consumers prioritizing affordability and low running costs.
To cater to this growing demand, Hyundai has adapted its product offerings to ensure the availability of CNG in its major models. This strategic focus on alternate fuels is a crucial growth area in rural markets where fuel economy and lower per-km costs are crucial.
Hyundai's rural strategy for CNG vehicles also includes a broader multi-model pipeline. The company plans to launch 26 new models by 2030, including 20 internal combustion engine models (including hybrids) and 6 electric vehicles. This diverse product line-up supports rural expansion by providing a range of options for different customer needs.
In addition to its rural strategy, Hyundai is also investing in renewable energy. The company has incorporated a 10 MW rooftop solar power plant and has made group captive agreements for 75 MW of solar and 43 MW of wind power to fulfill its RE100 target of 2025. As of March 2025, Hyundai Motor India's renewable energy mix stands at 88 per cent.
Looking ahead, Hyundai Motor India plans to start production at its Talegaon facility in FY 2025-26, increasing overall production capacity by up to 2.5 lakh units each year. This expansion will support Hyundai's aggressive launch schedule from FY 2025-26 to FY 2029-30, consisting of 26 new or refreshed models.
In a potential further expansion, Hyundai is considering launching its global luxury brand, Genesis, in India. Genesis aims to "redefine luxury through innovation, design, and differentiated experiences" in India, entering a competitive space dominated by Mercedes-Benz, BMW, Audi, and others.
[1] Hyundai Motor India Limited Press Release, "Hyundai Motor India Announces Increased Rural Penetration and CNG Sales Growth", March 2025. [2] Hyundai Motor India Limited Press Release, "Hyundai Motor India's Sustainability Report 2024-25", March 2025. [3] Hyundai Motor India Limited Press Release, "Hyundai Motor India's Product Line-up and Manufacturing Plans for FY 2025-26 to FY 2029-30", March 2025. [4] Hyundai Motor India Limited Press Release, "Hyundai Motor India's Renewable Energy Strategy and Achievements", March 2025.
- The expansion in rural markets by Hyundai Motor India extends beyond just automotive manufacturing, as they also prioritize investments in renewable energy.
- In the field of personal finance, Hyundai Motor India is expected to introduce its global luxury brand, Genesis, in the competitive Indian market.
- The technology sector will see innovation from Hyundai with their plans to launch 26 new models, including hybrids and electric vehicles, by 2030.
- The company is strategically adapting their product offerings to include CNG options, recognizing the importance of affordability in the rural lifestyle.
- In a move towards data and cloud computing, Hyundai Motor India has incorporated a 10 MW rooftop solar power plant and entered group captive agreements for 118 MW of renewable energy.
- The home-and-garden industry may benefit as Hyundai increases their production capacity at their Talegaon facility, creating more jobs and contributing to the local economy.
- To boost the transportation industry, Hyundai will launch 26 new models or refreshed vehicles between FY 2025-26 and FY 2029-30, increasing overall production capacity.
- As part of Hyundai's renewable energy strategy, they have achieved an 88 per cent renewable energy mix and are working towards meeting their RE100 target by 2025.
- The real-estate sector might witness investment opportunities as the launch of Genesis in India could stimulate growth in luxury residential projects catering to the premium segment.
