Hyundai Motors is the 2nd largest and most popular car manufacturer in India, known for offering feature-loaded and reliable cars at a very reasonable price tag. Hyundai also has a long history in India, but what makes it stand out is the fact that Hyundai was an unknown global brand from South Korea that entered the market when Indian companies like Maruti Suzuki, Tata Motors, Mahindra, Premier and Hindustan Motors had complete domination and managed to achieve immense success despite the odds. Sounds exciting right? Let’s dive into the history of Hyundai Motors in India and see how it went from unknown to one of the largest carmakers in India.
The Journey Started in 1996
Hyundai Motors India is a subsidiary brand of Hyundai Motor Company of South Korea that came to Indian shores in 1996. With a brand name that translates to modernity and the tagline “New Thinking, New Possibilities”, there was a single objective and that was to offer new possibilities to Indian customers. So, the company set up its first plant in Tamil Nadu on May 6, 1996.
Hyundai launched its First Car in India in 1998
In 1998, Hyundai launched its 1st car in India, the Santro which was a huge success and gave the rivals a real headache. The hatchback quickly became a favourite choice among buyers since the styling of the Santro was quite unique from the usual boxy-styled hatchbacks during those days. The car was such a hit after its launch that Hyundai quickly became the 2nd largest carmaker in India and the 1st largest exporter. The Santro has got major updates since then and in fact, it’s still in production.
Following Santro’s success, Hyundai launched the Accent in the Indian market during Liberalisation in 1999 when the Automotive Industry in India was flooded with cars from different manufacturers. Despite the higher competition, the Accent also managed to be a huge hit in India just like the Santro.
The Failures
But it wasn’t all sunshine and rainbows for Hyundai Motors in India. In 2001, the brand decided to launch the Sonata as a premium sedan in India which was both powerful and feature-loaded. But it failed against other popular rivals like the Toyota Camry and Honda Accord. Hyundai tried again by launching the Embera which is a newer generation Sonata but the company failed to understand the market trends at that time. the Sonata Embera was the most luxurious Hyundai in those days and hence it had the same end as its predecessor.
This was something that was going wrong for Hyundai. Perhaps they failed to study the Indian market trends properly, took their name and tagline way too seriously and rushed in. Why? Because in 2003, Hyundai introduced the Terracan SUV in India. It was a luxurious and powerful SUV with a 148hp/343Nm 3.0-litre engine accompanied by an AWD system and a ladder frame chassis. The reason it failed was because this SUV was way ahead of its time and didn’t attract customers.
Hyundai’s Consistency
After a few failures like the ones mentioned above the brand has quite a successful run in India with lots of popular names like the i10 (Rab ne Bana di Jodi made it popular), i20, Creta, Venue, Aura and Exter. Hyundai was joined by its sibling KIA in 2019 which is also doing quite well. As of now, Hyundai continues to maintain the 2nd largest carmaker position in India with recorded sales of 7,77,876 units in FY2023-24. It also holds the record as the number one exporter of passenger cars in India for the 8th year in a row. To be honest, it has managed to stay consistent.
Frequently Asked Questions (FAQ)
When did Hyundai Come to India?
Hyundai Motor Company established their 1st plant in India in 1996 near Chennai as the Hyundai Motor India Limited.
Is Hyundai Indian or Korean?
Hyundai Motor Company is a South Korean Brand
Which was the First Car launched by Hyundai in India?
Hyundai Santro
Why do Indians love Hyundai?
Hyundai cars are loved by Indians because of their affordability, reliability and Style. They are often considered value for money.
