AS U.S. SLAPS 15% TARIFFS, HYUNDAI AND TOYOTA ARE BETTING BIG ON INDIA
On Tuesday, industry reports revealed that Korean and Japanese automakers are ramping up competition in India, the world's third-largest auto market, amid a 15% U.S. tariff on vehicles from South Korea, Japan, and the EU.
Hyundai Motor Group sold 427,948 units in India during the first half of 2025—Hyundai with 285,809 (down 7.7%) and Kia with 142,139 (up 12.7%). Hyundai ranked third in market share (13%), Kia sixth (6%).
Since entering the Indian market in 1996, Hyundai has built a strong presence. General Motors, which entered earlier, has since exited, while Maruti Suzuki’s share has dropped from 80% to 40%.
Hyundai's success in India is driven by localization. The Santro hit 100,000 sales in 20 months, while the Creta, launched in 2015, has sold over 1.26 million units, becoming a top-selling SUV.
Kia, in India since 2019, launched the updated Seltos in February and sold 24,371 units in H1 2025.
Hyundai Motor Group is expanding production. It runs two plants in Chennai and will activate a third in Pune (Talegaon) later this year. Along with Kia’s Anantapur plant (500,000 units), total capacity will hit 1.5 million vehicles annually.
Toyota, with 7% market share in India last year (ranked 5th), is also scaling up. It operates two plants, with a third coming in 2026 to reach 400,000 units. A fourth plant is under negotiation, aiming for over 500,000 units total.
India’s appeal: 1.4 billion people, 5 million cars sold annually, but only 8.5% car ownership. A rising middle class and strong growth signal major expansion potential.
The recent US decision to impose a 15% tariff on cars from Korea, Japan, and the EU has shifted automakers' focus further toward India.
India's EV market is booming. The government targets 30% EV share by 2030. EV sales hit 114,000 in 2024, growing 78% annually since 2015. They’re projected to reach 5.49 million units by 2040.
Tesla’s new Mumbai showroom and upcoming vehicle deliveries underscore India’s EV market potential. Hyundai plans to launch an electric Creta and introduce five EVs in India by 2030.
Despite electrification, local production is key. India imposes 60–70% tariffs on finished vehicles and 10–15% on batteries, making localization essential for competitiveness.
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2025-08-06T09:21:51Z