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Informist, Thursday, Sept. 3, 2026

 

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--Hyundai Motor Garg: Vessel availability affecting co's exports
--CONTEXT: Comments by Hyundai Motor MD, CEO Garg to media
--Hyundai Motor Garg: Seen minimal impact of West Asia war on export demand
--Hyundai Motor Garg: Seeing higher demand for Creta diesel variant
--Hyundai Motor Garg: EVs under 4 metre seeing good demand
--Hyundai Motor Garg: Mid-SUV segment seeing strong growth
--Hyundai Motor Garg: West Asia war sharply lifted EV penetration in cars
--Hyundai Motor Garg: Have healthy inventory of 4-5 weeks
--Hyundai Motor Garg: Can triple Venue exports in a year
--Hyundai Motor Garg: Hope commodity prices ease soon
--Hyundai Motor Garg: Situation on commodity prices not very good
--Hyundai Motor Garg: Battery-as-a-service lifted Creta EV sales

 

NEW DELHI – Hyundai Motor India Ltd. Managing Director and Chief Executive Officer Tarun Garg expressed concern over high commodity prices weighing on the automaker, even as the company has tried to optimise costs and raise car prices. Garg, at a media roundtable on the sidelines of the 66th annual conclave of the Society of Indian Automobile Manufacturers here Thursday, said he sees commodity cost inflation as an impact of geopolitical uncertainty and not a structural issue.

 

"...hopefully we see in H2 [second half of financial year 2026-27 (Apr-Mar)] more benign commodity (prices) and of course we are trying to see how we can increase localisation further, how we can do cost optimisation, so if you see the price increases, they have been much much less than the commodity (price) increase. We want the momentum to stay...hopefully I don't think this is going to last very long, I think they will start coming down," Garg said in response to a question from Informist.

 

Garg said vessel availability due to the war in West Asia is affecting the company's exports, but the demand in export markets has seen a very minimal impact from the war. The top executive expects the shortage of ships, which had impacted trailing month sales, to end soon. The company is seeing higher demand for the diesel variant of its sport utility vehicle Creta, he said.

 

Hyundai Motor is seeing an impact of almost 300 to 400 basis points on revenues due to higher commodities costs, Garg said. The company is experiencing high demand for sub-four-metre sport utility vehicles. More than half of the order book is on a waiting period of around four to six weeks--six to eight weeks on some variants--due to a gap created by the fire at its supplier, Mobis, and the automaker is trying to reduce this period, Garg said. "We hope that before the festive season, we should be able to neutralise the waiting period," he said. On a question about the company's inventory, the CEO said the company is maintaining a healthy inventory for four to five weeks.

According to him, the expansion in electric vehicle charging infrastructure has been the direct enabler and given a big boost to the market penetration of electric vehicles. "EVs have moved up to 7-8% (market penetration)," Garg said, compared with two years ago when such vehicles had a market penetration of 2.4%-2.5%. "I think very clearly EVs have taken a leap," he added.

 

The company aims to triple exports of its other sport utility vehicle, Venue, from 6,500 units currently. "I think this is a great opportunity...I will not be surprised if next year we are looking at 20,000 (unit exports)," Garg said.

 

The battery-as-a-service model has been a big booster for the company and has drawn customers to showrooms, according to him. Garg also said Hyundai Motor is planning to launch a compressed natural gas-powered vehicle "at the right time" which will be priced at up to INR 1.5 million.  End

 

Reported by Pratyush Kumar and Anand JC

Edited by Shubhayan Bhattacharya

 

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