autoX Awards 2024: Hyundai Interview

Until very recently, the Creta was an aspirational product. It’s now one of the best-selling cars in the Indian market as a whole. Talk us through that journey of aspiration and how a car like this can become one of the best-selling cars in India.

I think that’s a very interesting question. I’ve been in the Indian auto industry for three decades now. When the Creta was launched in 2015, it was a small car market in India, and SUVs used to contribute only about 13.5% of the overall market. But the Creta changed it all. The best thing about the Creta is that it’s a benchmark in itself. And it continues to create new benchmarks. We have sold about 1.1 million cars already in the market.

Like you said, it’s a bestseller, not only in this mid-SUV segment as a leader, but across the chain you can see customers moving towards the Creta. And so many first-time buyers – in fact, 28% of Cretas are being sold to first-time buyers. I think this is again a testament to how the Indian market has evolved and how aspiration has taken over from functionality. 

What has changed operationally & strategically post the IPO?

We have been in India now for 28 years, and Hyundai has got all the love and affection from Indian customers. We have been known for benchmark products and technologies. HMG, as a group, is now the third biggest OEM. So, frankly speaking, success was always there. We believe that now with the IPO coming in, and with the opportunity for all the global and domestic investors to be a part of our success story, it gives a great feeling. The communication has definitely gone up because now, every quarter, we’re going to talk to investors and the media.

This is the first ever listing outside of Korea for HMC, which is very important. In terms of capacity, after the Pune plant kicks in, we’ll be number one in terms of capacity outside of Korea for the Hyundai Motor Group.

It’s really a lot of fun and excitement at the same time, and a lot of responsibility. It gives us an opportunity to really take Hyundai Motor India to global standards in terms of operations, excellence, and corporate governance.

You’ve been in leadership positions in the country for decades. In that time, we’ve seen a lot of brands come and go. What advice could you give brands on what is that secret sauce to succeeding in a market like India?

I think it’s very simple. We have to give respect to India. India is a very unique market, and the global formulas will not work here. So, we really need to see what the customer wants. Value is very important. At the same time, you need to pay attention to not just the spoken needs, but also to the unspoken and latent needs of the customers. This is what Hyundai has been able to do – always trying to raise the benchmark.

To give you some examples – Bluelink in the Venue and six airbags as standard in the Exter. Of course, if you go back 26 years, the Santro came with an MPFI engine and the CRDi diesel. So, I think it’s all about understanding the customer and giving respect to the customer. At the same time, being a part of the global OEM really helps because it gives us access to all kinds of technologies.

I think one thing which is very important about India is that one solution will not work for all states or segments. So, you need to really be technology agnostic. For example, today we have petrol, CNG, diesel, electric —all kinds of powertrains. We have four different kinds of automatics. So, for various geographies, we have everything for the customer.

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28% of Creta sales are to first-time buyers. I think this is a testament to how the Indian market has evolved and how aspiration has taken over from functionality

Unsoo Kim, Managing Director and Tarun Garg, COO & Whole-time Director, Hyundai Motor India accepting the ‘Best of 2024’ award for the Hyundai Creta.