India is a challenging automotive market and economies of scale are important to extract the advantages. Here, Hyundai have been successful for close to two decades and have been profitable, as they have been using India as a global export hub and in parallel are reaping the benefits.
Hyundai, which has achieved three consecutive years of rising sales, now ranks second among all automakers in India. It overtook Tata in 2014, when it shifted its focus from exporting to local sales and began expanding its lineup in India rapidly. But Hyundai’s volume is still less than half of Suzuki who has had a valuable partnership that has made them No.1.
Hyundai has committed in early 2017 that it would bring at least 10 new vehicles to India, three of which would be in segments where the company doesn’t currently compete. The signs are good and Indian car buyers are going to be the beneficiaries.
