Tag: kia

Hyundai Motor Group Said to Be Planning to Launch Hybrid Cars in India as Early as 2026

Hyundai Motor Group plans to launch its first hybrid cars in India as early as 2026, three sources said, as the South Korean auto group shifts strategy to look beyond electric vehicles and boost its presence in a key auto market.

The group, housing Hyundai Motor and Kia, is evaluating a hybrid sport-utility vehicle of size similar to its top-selling, mid-sized Creta SUV in India, said two of the sources who have direct knowledge of the plans.

Both Hyundai, which is India’s second-largest carmaker, and Kia are targeting the launch of hybrid SUVs in 2026 or 2027, the two sources said, adding that their EV plans for India were also on track.

In a statement, Hyundai Motor Group told Reuters it was “committed to a future of electrified mobility and will optimize product strategies for each market”.

The pivot to hybrids – which use a gasoline powertrain and electric motor – comes as Hyundai sees a surge in sales of the technology in India, prompting it to shift away from an initial strategy that focused only on battery electric vehicles.

Hyundai and Kia, which now sell only gasoline and diesel cars and imported EVs such as the IONIQ 5 and EV6, respectively, are working to launch their first India-made EVs in the world’s third-largest car market in 2025.

But EV sales have been slow to pick up because of high prices and inadequate charging infrastructure, spurring the company to turn to hybrids as an “interim strategy”, one of the sources said.

“Hyundai has the hybrid technology in other markets. It has now begun work on tailoring that technology for cars in India to make it mainstream,” said the source, adding that growing consumer demand and acceptance of hybrids in recent months led to the shift.

Total car sales in India topped 4 million in 2023, with EVs accounting for more than 2 percent. Hybrids, led by Toyota Motor, are inching closer, with a share of 2 percent.

Hyundai is doubling down on India, where it plans a $3-billion IPO, amid a scaleback of production in China following years of losses there, and having sold its two Russian plants.

Mid- and long-term strategies for India, including EV and hybrid plans, featured in discussions held by Hyundai Motor Group Executive Chair Euisun Chung, during his second visit to the country last week in less than a year.

India is Hyundai’s third biggest revenue generator after South Korea and the United States.

© Thomson Reuters 2024

Samsung launched the Galaxy Z Fold 5 and Galaxy Z Flip 5 alongside the Galaxy Tab S9 series and Galaxy Watch 6 series at its first Galaxy Unpacked event in South Korea. We discuss the company’s new devices and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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Hyundai, Kia to Launch First India-Made EVs Next Year

South Korea’s Hyundai Motor Group will launch its first India-manufactured electric vehicles by 2025 as the parent of the Hyundai and Kia brands looks to boost its presence in the nascent space dominated by Tata Motors.

Production of Hyundai’s locally manufactured EVs will begin by the end of 2024 and will be launched by 2025, along with Kia’s India-made EV, the Hyundai Motor Group said in a statement on Thursday, adding that it would unveil five models by 2030.

Both brands will use batteries made by Exide Energy Solutions to power their EVs, they had said earlier this month.

India is the biggest market outside North America and Europe for Hyundai, where its unit is headed for a $3 billion (roughly Rs. 24,997 crore) IPO – the country’s largest.

Hyundai, India’s no. 2 carmaker, known for its top-selling ‘Creta’ sport utility vehicle, currently sells two electric models in India, the Kona and IONIQ 5, neither of which are produced in the country. Kia’s lone electric offering, the EV6, is imported.

The company also reaffirmed Hyundai’s target of reaching annual production of 1 million by 2025, adding it would expand capacity at Kia to 432,000 from about 300,000. The combined capacity will grow to 1.5 million units.

Earlier this year, Hyundai completed the acquisition of a former Chevrolet plant in western Maharashtra state as part of its push to get production to 1 million units.

The announcements came during Hyundai Motor Group Executive Chair Euisun Chung’s visit to India – his second in less than a year.

© Thomson Reuters 2024

Samsung launched the Galaxy Z Fold 5 and Galaxy Z Flip 5 alongside the Galaxy Tab S9 series and Galaxy Watch 6 series at its first Galaxy Unpacked event in South Korea. We discuss the company’s new devices and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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Tesla Faces Challenge as Rivals Decide to Form Electric Vehicle Charging Firm

A group of major automakers on Wednesday said they were forming a new company to provide electric vehicle charging in the United States in a challenge to Tesla and a bid to take advantage of Biden administration subsidies.

The group includes General Motors, Stellantis, Hyundai Motor and its Kia affiliate, Honda, BMW and Mercedes Benz, brands representing about half of US vehicle sales but a small share of the EV market dominated by Tesla.

The unusual coalition of competitors said the new joint-venture company would aim to become the leading provider of fast charging in North America with a target of rolling out 30,000 chargers, starting along major highways and in cities. 

The automakers did not specify how much they would invest individually or collectively, but said they would be open to additional investment or participation from other companies, including outside the auto industry. A name for the venture was not announced.

Tesla, which accounted for more than 60 percent of US EV sales last year, has the largest current network of fast-chargers with almost 18,000 Superchargers in the United States. 

Tesla said earlier this year it would open part of that charging network to EVs from rival brands in order to be eligible for a share of funding from the $7.5 billion (nearly Rs. 61,500 crore) in federal subsidies on offer to expand the use of EVs.

Tesla’s lead in building out a network of chargers has given it sway in setting the standard for how future EVs will connect and power up, something smaller charging companies and other EV makers have viewed with concern.

GM, Mercedes and others have signed on to adopt Tesla-developing charging technology from 2025 to get access to a larger share of its Superchargers.

The other automakers – Stellantis, Hyundai, Honda and BMW – have not committed to the Tesla technology known as the North American Charging Standard (NACS) and have product plans that rely on a rival known as the Combined Charging System (CCS).

The new charging company will support both CCS and the Tesla standard.

“A strong charging network should be available for all – under the same conditions – and be built together with a win-win spirit,” Stellantis CEO Carlos Tavares said in a statement.

In a statement, chief executives of the seven auto brands said a charging network built out like gas stations with restrooms, food service and retail operations would support a faster rollout of EVs, which they said they expected would top 50 percent of US sales by 2030.

The new company would compete against established EV charging companies, including Volkswagen‘s Electrify America, ChargePoint and EVGo, which are also looking to accelerate the rollout of chargers with federal funding.

The Biden administration has set a target of hitting 5,00,000 chargers by 2030, an almost four-fold increase.

© Thomson Reuters 2023  

Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company’s recently launched handset and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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India’s Passenger Vehicle Makers See Double Digit Growth Amid Improvement in Chip Shortage Issue: Details

Improvement in semiconductor shortage issue helped auto makers, including Maruti Suzuki, Hyundai, Tata Motors and Mahindra & Mahindra, report single to high double-digit growth on Monday in their domestic passenger vehicles sales in July.

Other manufacturers, Kia India, Toyota Kirloskar Motor (TKM), Honda Cars India, Skoda Auto India, also reported robust growth in their domestic passenger vehicle sales with the auto industry estimated to have achieved the highest-ever passenger vehicle wholesales in July this year.

Maruti Suzuki India said its domestic passenger vehicle sales rose 6.82 percent last month to 1,42,850 units compared to 1,33,732 units in July 2021.

“The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models,” the company said in a statement.

The company’s sales were driven mainly by compact cars, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR, which rose to 84,818 units in July 2022 from 70,268 units in the year-ago month.

Sales of mini cars — comprising Alto and S-Presso — grew to 20,333 units last month, up from 19,685 units in July 2021. However, sales of utility vehicles —including Brezza, Ertiga, S-Cross and XL6 — were lower at 23,272 units compared to 32,272 units.

“The overall industry sales stood at over 3.42 lakh units last month as compared with 2.94 lakh units in July 2021. This is the highest wholesale figure we have ever seen in the industry,” MSI India Senior Director (Marketing and Sales) Shashank Srivastava told PTI.

The previous best wholesales stood at 3.34 lakh units in October 2020, he said, adding, it has been possible due to better production as chip shortage eased a bit.

The industry is expected to cross 37 lakh unit sales mark this fiscal, which is going to be the highest ever, he noted.

Another major player Hyundai Motor India said its domestic sales were at 50,500 units last month, 5.1 percent higher than 48,042 units sold in July 2021.

“With the improvement in the semiconductor situation, the passenger vehicle segment is showing positive trends riding on the green shoots of pent-up demand and customer desire towards personal mobility,” HMIL Director (Sales, Marketing & Service) Tarun Garg said.

Tata Motors posted a 57 percent increase in its domestic passenger vehicles sales at 47,505 units as compared to 30,185 units in the year-ago month. The company’s passenger electric vehicle sales also rose to 4,022 units last month from 604 units in July 2021, the company said.

Similarly, Mahindra & Mahindra reported a 33 percent increase in domestic passenger vehicles sales in July this year at 28,053 units as against 21,046 units in the same month last year, driven by its utility vehicles.

M&M’s domestic utility vehicle sales during the month were at 27,854 units, as against 20,797 units in the year-ago month, up 34 percent, while sales of cars and vans were down 20 percent at 199 units, as compared to 249 units a year ago.

“The supply chain situation continues to remain dynamic, and we are monitoring the situation closely,” M&M President, Automotive Division, Veejay Nakra said.

Kia India also reported a 47 percent increase in its wholesales to 22,022 units in July as compared to 15,016 units in July 2021.

Gradual improvement in the supply chain and continued demand for the brand is adding momentum to the company’s growth, Kia India Vice President & Head of Sales and Marketing Hardeep Singh Brar said.

Another automobile manufacturer Toyota Kirloskar Motor (TKM) reported its highest-ever dispatches in a month at 19,693 units in July. This was 50 percent more than 13,105 units it had sold in July 2021.

Skoda Auto also reported a 44 percent increase in its wholesales at 4,447 units in July as compared to 3,080 units sold in July 2021.

“This is usually the period where big purchases are kept on hold as it’s the monsoon and deferred till the festive season kicks off. Yet, we have clocked in solid numbers on the back of our made-for-India, INDIA 2.0 cars, the Kushaq and the Slavia,” Skoda Auto India Brand Director Zac Hollis said.

Honda Cars India reported a 12 percent increase in domestic sales last month at 6,784 units.

The maker of City and Amaze also exported 2,104 units last month.

The company had reported sale of 6,055 units in the domestic market and 918 units in overseas markets in July last year.

On the other hand, MG Motor India reported a 5 percent decline in retail sales at 4,013 units in July as production impacted by supply chain constraints. The company had registered retail sales of 4,225 units in the same month last year.

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Electric, Hybrid Cars to Face Long Waiting Periods as Carmakers Deal With Chip Shortage

Leading carmakers are grappling with a huge backlog of around 6.5 lakh units, with chip shortages continuing to crimp their manufacturing activities and leading to long waiting periods for customers. The country’s largest carmaker Maruti Suzuki alone has a backlog of around 3.4 lakh units while Hyundai and Mahindra & Mahindra have a combined pending order list of about 3 lakh units.

Tata Motors, Kia, and Honda are also sitting on substantial pending orders.

With the auto industry slowly witnessing revival after pandemic shocks, in recent times, even luxury carmakers have seen demand outstripping supply, resulting in backlog of orders.

“As per our estimates, there should be a backlog of around 6.5 lakh units across the passenger vehicle market. For Maruti Suzuki alone, the figure has crossed the 3.4 lakh mark,” Maruti Suzuki India Senior Executive Director (Marketing and Sales) Shashank Srivastava told PTI.

According to him, enhancing production is the only way out of the situation.

“The last two quarters have been above nine lakh mark (sales) for the industry. It is the first time ever in the Indian auto industry that we have crossed nine lakh sales in consecutive two quarters…it means that demand remains very strong in the market,” Srivastava said.

The pending order list has grown due to chip supply issues which have been continuing for nearly two years now, he said and added that it will take time to reduce the backlog. “Going ahead, with enhanced production it will come down”.

A Tata Motors spokesperson said the waiting period for its passenger vehicle range stretches between 4-12 weeks, depending on model variant and colour.

“And for electric vehicles, it is going up to 6 months,” the spokesperson said.

Honda Cars India Director (Marketing and Sales) Yuichi Murata said the supply side challenges, including worldwide chip shortage, has affected its production and despatches since last year, leading to longer waiting periods for customers.

“Unfortunately, this situation still persists and we are trying our best to address this situation,” he said.

Further, he said the company has been prioritising the production of fast-selling models and variants to cater to the demand effectively.

The waiting period for company cars varies anywhere from 2 to 9 months.

Petrol variants have two months of waiting, diesel variants have 3-5 months, and City Hybrid have a waiting of 9 months for new bookings.

Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items.

The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation, and hybrid-electric systems.

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Indian Car Buyers Lapping Up SUVs, High-Tech Features Like Never Before

India’s romance with SUVs is intensifying and automakers are fuelling the affair, having launched 36 such models in the last five years. Such is the craze for SUVs at present that waiting periods for some of the most popular models are stretching to over two years, and fresh orders are still flowing in. Car buyers are now willing to spend more on their personal mode of travel and are preferring top-end variants that come loaded with features such as a sunroof and connected technologies.

In India, where hatchbacks used to dominate the sales charts, entry-level and mid-sized sports utility vehicles (SUVs) are are growing in popularity, leading to more and more product launches in the segment. “The SUV segment has seen a major growth in the last few years. The SUV segment’s contribution, which was around 19 per cent of the industry, has now gone up to 40 per cent in 2021-22 and we see it growing further,” Maruti Suzuki India Senior Executive Director (Sales and Marketing) Shashank Srivastava told PTI.

One of the reasons for the growth of this segment has been customers’ liking for vehicles with a high stance and better road visibility, he added. With this increase in demand, the entry-level SUV segment became the largest in the domestic passenger vehicle market last fiscal, overtaking the premium hatchback vertical which has dominated the market since 2011.

Out of 30.68 lakh units last year, the entry-level SUVs’ share stood at 6.52 lakh units. It is also no surprise that the largest number of model launches in the last five years in the entire passenger vehicle segment has been in the compact and mid-level SUV space.

“Also, the new age millennials are preferring to buy high-end variants which come equipped with several comfort and convenience features. Preference for feature-loaded cars has gone up from 17 per cent in 2016-17 to 24 per cent in 2021-22. In some of our models, like the recently unveiled Brezza, the top variants account for 70 per cent of bookings,” Srivastava noted.

Studies show that spending will increase further now, and people are willing to spend more, he said.

Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said differentiated design, evolving lifestyles, a shift from public to personal transport as a result of the pandemic, and a growing awareness of safety and convenience features are some of the factors that are driving growth in the passenger vehicles market.

“Customers today know exactly what they desire and we constantly strive to provide them with the same through our range, which is refreshed in short intervals, be it in terms of features, variants or brand new products,” he stated.

Chandra said the company’s strong comeback in FY21, reclaiming the third position in terms of volumes and being a challenger brand, has been thanks to a new range of cars and SUVs, which have been developed after studying the market in depth and understanding evolving customer needs.

Kia India Chief Sales Officer Myung-Sik Sohn said the increasing demand for SUVs among Indian customers clearly shows a strong preference towards bold, stylish vehicles with a tall stance. “We launched the Carens earlier this year and have already sold more than 30,000 units in less than five months,” he added.

Another trend the company is observing is that more and more customers are buying the top-end variants of cars, Sohn noted. “In fact, 47 per cent of the total Kias sold in India are top trims and this shows that customers today demand nothing but the best.” Customers today want connected features in their cars, and Kia now has more than two lakh connected cars on Indian roads with an activation rate of 97 percent, Sohn said.

Further, the modern digital savvy customer is increasingly scouting for the entire experience of owning a car with minimal physical contact, he added.

Toyota Kirloskar Motor Associate Vice President (Sales and Strategic Marketing) Atul Sood said the rapid pace of urbanisation and economic development is contributing to the demand for SUVs. Quite a number of models are already available in the segment in response to demand, thus making SUVs one of the strongest lineups in the car market today, he pointed out.

Sood noted that new launches and product refreshments always bring in excitement and added interest among customers. “We at Toyota have received an overwhelming response for all our new offerings, including the new Camry Hybrid and the new Glanza,” he said.

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