PUNE — "Hyundai Motor (005380) has become part of India. It has become an Indian brand."
That is how Hitesh Chadha, who runs the Hyundai Motor dealership Kundan Hyundai in Pune, Maharashtra, described the automaker's standing in a media interview on the 15th. "Hyundai entered with the Santro just as India's auto market was beginning to grow, and after 30 years together it has become a brand that everyone in the country knows," he said. "Indian customers rate Hyundai highly for its distinctive premium styling, forward-looking features and reliability."
Kundan Hyundai, which opened in 2008, is the largest Hyundai Motor dealership in Pune and now employs about 280 people. It typically sells 300 to 350 cars a month, and that number rises above 500 during festival periods. "India has many festivals, and a great many customers buy cars at those times," Chadha said. "Hindu festivals are still under way, so this is a good stretch for sales."
Popular models can take seven to eight months to be delivered. The average buyer is 32 years old, with a high share of younger customers. Many are repeat buyers who come back because they trust the brand. "In India, buying on installments over three to seven years is standard," Chadha said. "Customers pick a model to match family size, income level and lifestyle — a middle-income household, for instance, will choose the Creta."
"In the early days, most customers did not think much about the car as long as it got them around," he said. "Now they look closely at safety, new features, sunroofs and connectivity, and more families are making the purchase decision together." Features tied to the overall driving experience — sunroofs, entertainment, wireless music playback and advanced driver assistance systems (ADAS) — are especially popular. Demand for sport utility vehicles (SUVs) is also rising steadily. "India's gross domestic product (GDP) grows every year, and under Prime Minister Narendra Modi infrastructure such as roads and telecommunications is improving quickly," Chadha said. "Car ownership will keep rising over time."
Electric vehicle sales are still at an early stage. The dealership sells about 15 EVs a month, roughly 5% of its total. "On a total cost of ownership (TCO) basis, EVs are far more favorable, but the purchase price is 15% to 20% higher than for internal combustion vehicles," he said. Still, he said the Creta Electric is drawing a good response as adoption rises, particularly in urban areas.
He was reticent about Hyundai Motor's recent decline in market share. The company held 17.4% of the Indian market in 2020 but slipped to 12.5% last year. "I am not an expert, so I cannot say what went wrong," he said. "Hyundai is preparing new models with customers at the center and rolling out the SUVs that customers prefer. With the new lineup coming and a range of powertrains including EVs in place, I expect market share to climb again."
He also cited the start of operations at Hyundai Motor's Pune plant as a positive. "The plant boosts production capacity," Chadha said. "Pune residents are coming to see Hyundai as a closer, more familiar brand, and that has brought more energy into the showroom."