Hyundai dealer bets on India's next generation of car buyers

India's shift from basic cars to high-tech SUVs and EVs opens new opportunities for Hyundai, veteran dealer says

PUNE, India — Hyundai Motor's newly opened plant in Pune is raising hopes of a sales rebound in India, where the Korean automaker is looking to regain market share as younger, tech-savvy consumers reshape demand.

Hitesh Chadha, director of Kundan Hyundai, a major Pune dealership, said the added production capacity could strengthen Hyundai's appeal among Indian buyers while supporting SUV and electric-vehicle sales.

"As we have enhanced capacity, now people feel more connected … and feel that Hyundai is truly their home brand," Chadha told The Korea Herald during an interview at the dealership Thursday.

Hyundai inaugurated its Pune plant Wednesday with an initial annual capacity of 170,000 vehicles. It is expected to rise to 250,000 within two years and 320,000 by 2030. Together with its Chennai facilities, the expansion will bring Hyundai's total production capacity in India close to 1 million vehicles annually.

From basic mobility to high-tech demand

Having worked with Hyundai dealerships for 18 years, Chadha has seen Indian consumers' expectations shift.

"Back then, if a car could take a family reliably from Point A to Point B, that was enough," he said, recalling the market in 2008.

Today, rising incomes, better roads, and a younger generation of buyers have shifted demand toward vehicles with advanced technology, safety, and premium features.

With the average Indian car buyer around 32 years old, according to Chadha, features such as advanced driver assistance systems, panoramic sunroofs and connected-car technology are increasingly influencing purchasing decisions.

"Vehicle purchase has evolved into a family decision focused on the 'total ownership experience,'" he said.

For Hyundai, which entered India nearly three decades ago with affordable models such as the Santro, the shift presents both an opportunity and a challenge.

The automaker has slipped to fourth place in India's competitive passenger vehicle market, behind domestic rivals Tata Motors and Mahindra & Mahindra, according to Chadha. He believes a stronger SUV and EV lineup, backed by increased local production, could help Hyundai regain ground.

EVs gain traction despite price premium

At Kundan Hyundai, electric vehicles account for about 5 percent of monthly sales, or roughly 15 units, with demand gradually increasing.

Chadha said EVs still cost 15 to 20 percent more upfront than comparable gasoline-powered vehicles, but lower running costs are making them increasingly attractive.

The Creta Electric SUV, launched in 2025, is among the models drawing interest.

During the visit, physicians Shahaji Kodam and Tilottama Kodam placed an order for a Creta Electric, citing its combination of electric efficiency and the high ground clearance needed for India's uneven roads.

Sales also reflect India's calendar. Kundan Hyundai typically delivers 300 to 350 vehicles a month, but volumes can exceed 500 during major festivals such as Diwali, Dussehra and Gudi Padwa.

Beyond sales, the dealership is investing in after-sales support to retain customers. Its service center operates 15 repair bays, including dedicated EV diagnostic facilities, and maintains an inventory of more than 20,000 parts and related items.

For Chadha, the new Pune plant presents an opportunity for Hyundai to translate its expanded manufacturing presence into stronger customer loyalty — and ultimately recover lost ground in one of the world's most competitive auto markets.