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Electric vehicles (EVs), not hybrids, will be Hyundai Motor India’s most powerful growth driver in the near term, according to incoming chief executive Tarun Garg.

The carmaker, which listed last year in the country’s largest IPO, has announced a Rs45,000 crore capex plan as it prepares for a product cycle that spans EVs, hybrids, off-roaders and MPVs through 2030.

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Garg—set to become the first Indian to run the Korean giant’s India operation—inherits both the public market’s demands for margin discipline and a strategic mandate to increase market share to 15 percent by the end of the decade. He spoke to Forbes India on the sidelines of the launch of the new Venue. Edited excerpts:

Q. You protected margins this festive season by not getting into a “price war” after the GST cuts. Is that because you’re a freshly listed company or is it going to be the norm going forward?

We always believe in quality of sales and quality of growth, because that is sustainable. If you go only for volume but don’t look at the margins or the quality, it gets very difficult to sustain. So that has been our policy. Now that we are listed, shareholders also have some expectations from us in terms of margins and guidance. And we are a responsible organisation: We want to move forward and we want to leverage our technology, the strength of our new products, the R&D strength of the group. We want to launch new powertrains, new products. The Pune plant (which began production in October) means that production is much more automated.

We have a very strong export market. We want to continuously expand that. This is the way we want to move forward rather than only looking at the growth.

Also Read: How Korean carmaker Hyundai cracked the Indian market where European makers are struggling

Q. Hyundai has laid out plans till 2030. Where do you see the next phase of growth coming from—hybrids or EVs?

India is a big market and there will be space for all technologies. In the immediate term, the biggest growth driver will be EVs. But, going forward, maybe after a couple of years, hybrid will also start playing a big role like it has happened globally.

Q. You’ve seen massive successes with Creta but the sweet spot in India remains the sub-4 metre segment. Now with GST cuts and draft CAFE norms both supporting small cars, will we see a revision in your strategy in the medium term? One could argue the launch of the new Venue (a sub-4 metre SUV) is in that direction…

We are going to look at all the segments. We have already announced that we’re going to enter the off-road segment, the MPV segment. The second-generation Venue is here, the N Line [of the Venue] with 32 changes has come in.

We are going to be present everywhere. We are looking at technology, engine, body type, products, investment, plants, R&D and finance (with Hyundai Capital). The plan that we’ve already announced is comprehensive and now it is up to me and my team to execute it.

Q. So SUVs will remain Hyundai’s focus and not entry-level segments?

I think customers have shifted their entry point. Earlier, they wanted only the price. Now they’re looking for value. They are looking for six airbags as a standard. They are looking for a good body type. So, we are continuously raising the benchmark. And it is a matter of pride for us that customers are wanting more from their cars.

Q. The new Venue is packed with features but it’s still in the affordable car range—much below Rs10 lakh. Is that going to be the new normal?

Hyundai’s strength has been to provide value to the customers. We want to work on very strong cost optimisation. We want to take advantage of our very strong R&D at Namyang Centre. Those are the factors that help us to price our products aggressively.

Q. How do you see the draft CAFE (Corporate Average Fuel Efficiency) norms?

The norms are still in a draft stage. We are still awaiting the final norms and we will make a statement after that.

Q. Last, how does it feel to be the first Indian leading Hyundai in the country?

I feel honoured and, frankly, overwhelmed. The kind of response I have received on social media has been overwhelming. It has become a moment of pride, not only for Hyundai, not only for the auto industry but for the entire country. And that puts a lot of responsibility on my shoulder because now the people have high expectations.

Because we went public last year—which was India’s biggest IPO, and where I had the opportunity to play a very important role—there is that added responsibility.

The global CEO came down to India and announced it [Garg’s elevation], along with Rs45,000 crore of investment. It’s a matter of great pride for me and I want to take this strong legacy, which has been already created by my predecessors for me, forward.

First Published: Nov 05, 2025, 17:52

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