Three decades after South Korea’s Hyundai entered India, Nisha Ajani counts herself among the millions of drivers whose lives were transformed by cars that offered something different to a market with few choices. Hyundai’s rise in India from being an unfamiliar foreign brand to an automative powerhouse alongside strong local competitors reflects India’s economic liberalization, its changes in consumer tastes and its rapid emergence as a global manufacturing power. Hyundai is now planning to build even bigger in India, with a commitment for a $15.5 billion investment in India through 2032 to build it into a global hub.
As EV adoption accelerates in India, we will also collaborate with local companies in the electric vehicle and battery sectors to develop EV ecosystem and local supply chain.” It has come a long way since Ajani bought her first Hyundai Santro: a compact hatchback with an unusually high roof, spacious cabin and interior that felt more contemporary than other vehicles on the market. She had just gotten her first job in the western Indian state of Maharashtra and her choices were limited given what she could afford. There were the imposing Hindustan Ambassador and Premier Padmini beloved by a previous generation.
There was also the affordable Maruti 800 hatchback from the Suzuki-backed company. None of them seemed quite right. Hyundai bet on India after liberalization began in 1991.
Industrial controls and restrictions on foreign ownership were gradually dismantled. Sectors that had been closed to foreigners were opened up and that included cars. Ford, General Motors, Honda and Daewoo were also trying to get a slice of the market—although they never achieved Hyundai’s breakthrough.
Then there were the domestic competitors. Tata Motors was developing its Indica to compete with newcomers, but the undisputed leader of India’s passenger-car market was Maruti with its 800 model, known for affordability, low maintenance costs and dependability, and its premium Zen. Maruti also had a trusted support network.
Hyundai Motor India, incorporated on May 6, 1996, needed to find something different. That was the Santro, launched on September 23, 1998 specifically for India. The name was derived from the French Riviera resort of Saint-Tropez.
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