April 18, 2024

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[THE INVESTOR] After tasting success in the Indian passenger car market, Hyundai Motor is eying to sell trucks and buses in the country, according to media reports on Aug. 3. 

Korea’s largest carmaker is considering making a foray into India’s small and heavy commercial market. Earlier in June, Hyundai’s commercial vehicle division visited India to conduct a feasibility study and meet with possible partners, the reports said citing a Hyundai Motor India official. But a final decision has not been made yet. 

A Hyundai Motor spokesperson in Seoul said he could not confirm the report. 

Hyundai sells around 100,000 units of trucks and buses a year in around 130 countries, with a strong presence in Korea and China. 

India is a fast growing market for both passenger and commercial vehicles that have expanded 9 percent and 4 percent, respectively, last year, according to industry data. India’s own Tata Motors and Mahindra Group dominate the commercial segment, claiming 52.9 percent and 42.9 percent market share, respectively. 

Back in 2008, Hyundai attempted to enter the India commercial vehicle market by partnering with UK-based Caparo Group to roll out luxury buses through a complete knock down manufacturing. But the plan had to be shelved, hit by the global economic recession. 

India is a critical market for Hyundai Motor Group, which is faced with struggling sales in its major markets, including the US and China, and at its home turf. 

Hyundai operates two plants in India for passenger vehicles, located in Chennai, Tamil Nadu state, with an annual production level of 650,000 units. 

Hyundai’s smaller corporate sibling Kia Motors is also planning to construct its first Indian manufacturing facility in Andhra Pradesh state, with aims to kick off production in 2019. Recently, Hyundai Motor Group Vice Chairman Chung Eui-sun made a business trip to India to oversee its operations in the country, highlighting the auto group’s emphasis on the market.

By Ahn Sung-mi (sahn@heraldcorp.com)