India key to navigating global trade shifts: Hyundai President & CEO Jose Munoz

NEW DELHI: Hyundai Motor Company is expanding its investment footprint in India, its global chief executive José Muñoz said on Tuesday, describing the country as essential to navigating global trade uncertainties and shifting automotive policies.

Speaking at the Bloomberg New Economy Forum, Muñoz said India is an example of the company's long-term investment strategy, which it believes is essential to navigating geopolitical tensions, shifting trade policies and changes in the automotive industry.

Hyundai plans to have about 50 per cent of its vehicles in India electrified by 2030, including CNG vehicles, electric vehicles, fuel-cell vehicles and hybrids, Muñoz, President and CEO of Hyundai Motor Co, said.


"So you need to stay the course, and then that's why we have decided to make these investments in India, and then this is how we have become a kind of a global player doing the same type of thing that we learn here in India. It's a kind of blueprint, right? So becoming local in all the markets," he said.

"We celebrate tomorrow our 30th anniversary in India, and we're going to make a big announcement in our new plant in Pune, our third one for the group, our second for Hyundai Motor Company," Muñoz said.

The executive said the company was continuing with its electrification strategy even as some competitors had decided against pursuing it, adding that long-term planning and consistent execution were important in an environment marked by uncertainty.

On managing trade and tariff uncertainties, Muñoz said Hyundai relied on a comprehensive strategy backed by an integrated business ecosystem spanning vehicle manufacturing, steel, logistics, distribution, robotics, autonomous driving, construction and data centres.

The group also builds nuclear power plants, which provide energy to data centres, he said, describing the interconnected businesses as a platform that helps it respond to changing market conditions.

He added that the group was developing the ability to plan ahead while remaining agile enough to respond to sudden changes.

Referring to Hyundai's India plans, he said the company was preparing to introduce 26 new vehicles, including electric vehicles across different segments.

"So, for example, now India is the star by having different elements of the strategy by being competitive, by launching EVs. Nobody thought that EVs would be relevant in this market just a couple of years ago.

"We saw it and we invested, and then we we are going to have the entry EV. We're going to have an SUV EV. We're going to have off-road vehicles. So 26 new vehicles in India. Who saw that, right?" he said.

Muñoz said the company would adapt quickly if circumstances changed, while stressing that an integrated ecosystem was crucial to managing risks across markets. He also called for consistency in regulations, particularly in industries requiring investments with long gestation periods.

"We operate in 200 countries, and then we have to fulfill regulations in every single country, and we always do. What is very important is the consistency of the regulation. When it changes very, very fast in an environment where you make investments that are going to last 30, 40 years, that's that's a big harm," he said.

On artificial intelligence, Muñoz described Hyundai as a "physical AI company", saying it was focused on applying the technology to practical business requirements rather than treating it as a standalone concept.

He said Hyundai's Atlas humanoid robots were scheduled to begin production in the United States by 2028, with a total capacity of 30,000 units, and would be deployed on production lines to improve productivity, quality and costs.

"Our Atlas robots are going to be starting to be produced by 2028 in the United States, with a total capacity of 30,000 of them, and we want to put them into our line to help us increase productivity, improve quality, and reduce costs," he said.

Muñoz said AI applications needed careful management, with companies identifying useful applications and removing those that did not work. He also called for common rules to prevent countries from exploiting regulatory gaps.