Hyundai Motor Company: Shaping Tomorrow’s Mobility

Shevaughn Pimenta, Apoorva Bajj

Dec 16, 2024 — 16 min read

Hyundai Motors Success Story

Established in 1967, the South Korean conglomerate has expanded its footprint across the world, with a presence in over 200 countries. Hyundai’s commitment to excellence is reflected in its diverse product range, which includes compact cars, sedans, SUVs and cutting-edge electric and hybrid vehicles.

Known for its emphasis on quality, technology and design, Hyundai has successfully built a reputation for delivering vehicles that cater to both traditional automotive markets and the evolving landscape of eco-friendly, electric mobility.

In this StartupTalky article, we will learn how Hyundai’s strategic initiatives, its startup story, founders, business model, revenue model, subsidiaries, competition, market expansions and technological advancements are setting the stage for a more sustainable and digitally connected future, keeping them ahead of competitors in the ever-evolving automotive market.

Hyundai Motor Company - Company Highlights

Name	Hyundai Motor Company
Headquarters	Seoul, South Korea
Sector	Automotive
Founded	1967
Founder	Chung Ju-yung
Website	Hyundai.com/in/en

Hyundai Motor Company - About

Hyundai is home to one of the world’s most impressive car manufacturing plants. Located in Ulsan, South Korea, this mega facility can produce a whopping 1.6 million vehicles every year! With a global workforce of around 75,000 employees, Hyundai has built a strong presence, selling its cars in 193 countries through a vast network of 5,000 dealerships and showrooms. As of November 2024, Hyundai proudly stands as the third-largest carmaker globally, just behind automotive giants Toyota and Volkswagen.

Hyundai Motor Company - Industry

India’s automotive industry is a powerhouse, ranking as the fourth-largest globally in both production and valuation according to 2022 figures. By 2023, it had climbed even higher, becoming the world’s third-largest automobile market in terms of sales.

The sector’s significance to the economy is immense. As of April 2022, the Indian auto industry was valued at over $100 billion, contributing 7.1% to the nation’s GDP and accounting for 8% of its total exports. However, car ownership remains relatively low, with only 8% of Indian households owning a vehicle, as highlighted by the 2021 National Family Health Survey. Additionally, India has just 22 automobiles per 1,000 people, a stark contrast to more developed markets.

The industry boasts a diverse lineup of manufacturers driving innovation and growth. Major players include Maruti Suzuki, Hyundai Motor India, Tata Motors, Mahindra & Mahindra and Ashok Leyland. Other contributors to this dynamic market are Eicher Motors, Royal Enfield, Tractors and Farm Equipment Limited, Sonalika Tractors, Force Motors and even specialized entities like Vehicle Factory Jabalpur and Kerala Automobiles Limited. These companies collectively form the backbone of India’s thriving automotive sector.

Hyundai Motor Company - Founders and Team

Chung Ju-yung

Chung Ju-yung is the Founding Chairman of Hyundai Motor Company. Born in 1915 in what is now North Korea, Chung Ju-yung was the eldest son in a modest farming family. At just 18 years old, he left his rural home in search of a better life, embarking on a journey that would define him as one of the most influential figures in modern Korea.

Chung’s early years were marked by determination and resilience. He worked various jobs, including railway construction, bookkeeping and dock work. In 1938, he ventured into entrepreneurship with a rice store, but the oppressive policies of the Japanese occupation forced its closure within a year. Undeterred, he continued to pursue opportunities, eventually repairing trucks for the U.S. Armed Forces after World War II. This experience laid the foundation for his entry into engineering and construction, where his business would later take on global, multibillion-dollar projects.

One of Chung’s most legendary achievements was his foray into shipbuilding—a field in which he had no prior experience. His boldness paid off when he secured a contract worth millions to build a ship. This audacious move would grow into Hyundai Heavy Industries, now the world’s largest shipbuilder.

Through relentless effort, ingenuity and a commitment to hard work, Chung built a series of businesses that were instrumental in transforming South Korea into an economic powerhouse. Despite his immense success, he remained humble, disciplined and focused on his work, embodying the values of simplicity and perseverance.

In his later years, Chung turned his attention to a cause close to his heart: the reunification of Korea. He dedicated himself to fostering dialogue and understanding between North and South Korea. His actions were often symbolic, such as driving 1,000 cattle across the border to North Korea, representing hope and unity. His efforts to bridge the divide between the two Koreas are seen by many as his most significant legacy.

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Chung’s life philosophy continues to inspire: “Failures, not successes, teach us the most valuable lessons. We need not remember our successes; others will do that. Instead, we must learn from our losses and failures—forgetting them leads to repeated mistakes.”

Unsoo Kim

Unsoo Kim is the Managing Director of Hyundai Motor India Limited, bringing over 30 years of experience with Hyundai Motor Company. He joined the company in 1991 and has since held various leadership roles across the globe, gaining extensive expertise in business planning, strategy and operations.

Mr. Kim holds a bachelor's degree in engineering from Seoul National University in Korea. His diverse career includes significant assignments in multiple global markets, where he has contributed to Hyundai’s strategic initiatives and operational growth.

Before his current role at Hyundai Motor India, Mr. Kim was the Executive Vice President of Global Operations at Hyundai Motor Company. His previous tenure with Hyundai Motor India spanned four years, including a key role as the Executive Director of the Corporate Planning Division from 2014 to 2015.

Hyundai Motor Company - Startup Story

Chung Ju-yung was a pioneering South Korean entrepreneur and the founder of Hyundai Group, one of the largest conglomerates in South Korea. His visionary leadership was instrumental in shaping the country’s rapid economic growth, particularly in the aftermath of the Korean War. Chung’s ambitious ventures played a crucial role in rebuilding South Korea’s infrastructure and establishing its presence on the global industrial stage.

In 1946, shortly after Korea’s liberation from Japanese rule, Chung founded Hyundai and Hyundai Civil Industries to capitalize on the country’s need for post-war reconstruction. He won major government contracts and became a key figure in developing South Korea’s transportation and energy infrastructure, including the Soyang Dam (1967), the Gyeongbu Expressway (1970) and the Kori Nuclear Power Plant.

One of Chung's most remarkable achievements was his expansion into shipbuilding. With no prior experience in the industry, he established the Ulsan shipyard, which became the world’s largest. Under his leadership, the first vessel was completed in just three years, a testament to his relentless drive and innovative approach. In 1975, he introduced the Hyundai Pony, South Korea's first domestically produced car, followed by the Hyundai Excel in 1986, both of which were developed with European expertise.

Chung also founded Hyundai Heavy Steel Company, which introduced a revolutionary non-dock shipbuilding method. His efforts not only helped make Hyundai a global leader in shipbuilding but also expanded its reach into various industries, making it one of South Korea's most influential chaebols. His ability to secure contracts from both the United States Forces Korea and the United Nations Command played a significant role in his company's early success and his determination helped Hyundai overcome the challenges of post-war South Korea.

Through sheer perseverance and vision, Chung Ju-yung not only built a business empire but also contributed significantly to the modernization of South Korea, leaving a lasting legacy in both the business world and the nation's infrastructure development.

Hyundai Motor Company - Mission and Vision

Mission

Hyundai’s mission is to deliver a customer-centered experience by offering innovative products and services that enhance mobility and promote eco-friendly lifestyles. The company is committed to ensuring safety and comfort, achieving cost competitiveness in the global market and driving technological advancements in areas like robotics, artificial intelligence and smart manufacturing.

Vision

Hyundai envisions a sustainable future by leading the transition to zero-emission vehicles, establishing a hydrogen ecosystem and developing software-defined vehicles by 2025. By neutralizing carbon emissions by 2045, Hyundai aspires to create a cleaner, greener planet while revolutionizing the automotive industry.

Hyundai Motor Company - Name, Tagline and Logo

Hyundai Logo

The name "Hyundai" comes from the Korean word for "modernity," embodying the company’s commitment to innovation and progress.

Tagline: Hyundai’s current slogan, "New Thinking, New Possibilities," reflects its forward-thinking philosophy and mission to push boundaries. Another tagline, "Next Awaits," was introduced as part of a "Progress" communication campaign, emphasizing the brand’s focus on future innovation.

Logo: Hyundai’s iconic “H” logo is more than just the first letter of its name. It symbolizes two people shaking hands—one representing the company and the other its customers—illustrating Hyundai’s dedication to trust and customer satisfaction. The silver color of the logo adds a touch of sophistication and modernity, aligning with the brand’s ethos.

Hyundai Motor Company - Business Model

Hyundai’s business model thrives on relentless innovation and a steadfast commitment to customer satisfaction. The company integrates advanced manufacturing techniques with stringent quality control to produce vehicles that prioritize safety, efficiency and performance. Leveraging digital transformation, Hyundai employs data analytics and artificial intelligence to enhance product development and strengthen customer engagement. Sustainability lies at the heart of its strategy, reflected in initiatives aimed at reducing carbon emissions and advancing green technology. With a diverse range of powertrains—including fuel cell, battery-electric, hybrid and mild-hybrid options—Hyundai caters to a wide spectrum of consumer needs, supported by smart safety features, cost-effective operation and industry-leading warranties.

Hyundai Motor Company - Revenue Model

Hyundai Motor Company’s revenue model is multifaceted, driving income through diverse streams. Vehicle sales form the backbone, spanning entry-level models to luxury and commercial segments, addressing varied market demands. After-sales services, including parts and accessories, contribute significantly by providing long-term value to customers. Hyundai also capitalizes on licensing agreements and strategic partnerships, particularly in automotive technology and sustainable mobility. The company’s expanding portfolio of electric and hybrid vehicles taps into the growing demand for eco-friendly transportation, positioning Hyundai as a leader in the green mobility market while ensuring robust financial growth and stability.

Hyundai Motor Company - Challenges Faced

The following challenges highlight the complex landscape Hyundai must navigate to sustain its growth and reputation in the Indian market:

Economic and Consumer Challenges

Hyundai faces significant challenges due to declining consumer sentiment, particularly in rural areas where sales have dropped noticeably. The imposition of an infrastructure cess, ranging from 1-4% in the Indian Budget, has further strained the automobile market, raising costs for consumers and affecting demand. These economic pressures have required Hyundai to reassess its pricing strategies and market positioning to remain competitive.

Policy Uncertainty

Frequent changes in government policies in India present another hurdle. Hyundai, which plans to raise INR 25,000 crore by selling a 17% equity stake in its local unit, has highlighted concerns about the instability of policy frameworks. Having invested nearly INR 30,000 crore since its entry into India in 1996, the company emphasizes that stable government guidelines are essential for confidently making technological upgrades and maintaining a steady flow of investments into the country.

Environmental and Ethical Concerns

As a car manufacturer, Hyundai faces growing scrutiny regarding its environmental impact, particularly in India, where air pollution is a critical issue. The company must adopt stringent measures to reduce emissions and align with the government’s push for sustainable transportation. Additionally, Corporate Social Responsibility (CSR) is gaining importance, demanding that Hyundai address ethical concerns and contribute proactively to environmental conservation and community development.

Hyundai Motor Company - Investments

Hyundai Motor Company has actively participated in strategic investments and partnerships, showcasing its commitment to technological advancements and innovation. Among its most notable exits are IonQ, SoundHound and SES (SolidEnergy Systems).

Announced Date	Organization Name	Funding Round	Price
Jun 5, 2024	42dot	Corporate Round	₩ 253 million
May 29, 2024	Obsidian Sensors	Convertible Round	–
May 3, 2024	Surff	Seed Round	–
Mar 18, 2024	AmpUp	Venture Round	$276.6K
Mar 18, 2024	Terracle	Series A	₩ 10.5 billion
Oct 23, 2023	Koop Technologies	Corporate Round	–
Jun 27, 2023	BOS Semiconductors	Seed Round	₩ 2 billion
Apr 25, 2023	42dot	Corporate Round	₩1.1 trillion
Dec 1, 2022	Gbike	Series C	$1 million
Jul 21, 2022	Floatic	Seed Round	₩ 3.4 million

Hyundai Motor Company - Mergers and Acquisitions

Hyundai has strategically expanded its capabilities through notable mergers and acquisitions, including:

Acquired On	Acquired Company	Price
Aug 15, 2022	42dot	$328 million
Feb 2021	Doosan	—
Dec 10, 2020	Boston Dynamics	$1.1 billion

Hyundai Motor Company - Growth

Although Hyundai Motor India continues to be the second-largest car manufacturer in India, trailing behind market leader Maruti Suzuki, it faces growing competition from domestic players like Tata Motors and Mahindra & Mahindra, which have gained traction, particularly in the SUV segment. The company also achieved a significant milestone as revenues crossed INR 60,000 crore, driven by higher production capacity utilization and an increasing share of SUVs in its portfolio.

Hyundai Financials	3rd Quarter 2023	3rd Quarter 2024
Revenue	KRW 40.99 trillion	KRW 42.93 trillion
Operating Profit	KRW 3.89 trillion	KRW 3.58 trillion
Net Profit	KRW 3.30 trillion	KRW 3.21 trillion

Hyundai Motor’s Third Quarter Revenue and Profit

Revenue Growth

Hyundai Motor Company reported a 4.7% year-on-year increase in revenue, reaching KRW 42.93 trillion for Q3 2024.

Profit Margins

Operating profit for the quarter rose to KRW 3.58 trillion, with an impressive operating profit margin of 8.3%. The company achieved a net profit of KRW 3.21 trillion, showcasing strong financial health and efficient operations.

Unit Sales

Global sales totaled 1,011,808 units, marking a steady performance amid declining global automotive demand. Sales in the North American market increased by 9.3%, while the Korean market saw a growth of 1.8%, highlighting Hyundai’s strategic market positioning.

Shareholder Returns

Hyundai maintained its commitment to shareholders by declaring a Q3 dividend of KRW 2,000, aligning with its established shareholder return policies.

Market Position and Sales

In FY2023, the company achieved record domestic sales exceeding 600,000 units, alongside strong export performance.

Financial Performance

HMIL demonstrated remarkable financial growth in FY2023, with net profit surging by 62.3% year-on-year to reach ₹4,709 crore.

Hyundai Motor Company - Subsidiaries

Hyundai Motor Company’s subsidiaries include:
1. Hyundai Motor India
2. Hyundai Motor Indonesia
3. Hyundai Motor America
4. Hyundai of Canada
5. Hyundai Motor of South America
6. Hyundai do Brasil
7. Hyundai China
8. Beijing Hyundai
9. Hyundai Japan
10. Hyundai Motor Philippines
11. Hyundai Motor Europe

Hyundai Motor Company - IPO (India)

Hyundai Motor India's Initial Public Offering (IPO) was a significant event, marking the company's entry into India's equity market with a book-built issue of INR 27,870.16 crores. The issue was entirely an offer for sale, with 14.22 crore shares up for sale. The IPO bidding process began on October 15, 2024 and closed on October 17, 2024. The allotment of shares was finalized on October 18, 2024, with the shares listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 22, 2024.

Despite the oversubscription, with the offering being more than two times oversubscribed, the shares closed at INR 1,819, lower than the initial public offering price of INR 1,960. The price band for the shares was set between INR 1,865 ($22.18) and INR 1,960. The IPO raised a total of INR 278.56 billion, or $3.3 billion, making it the largest IPO in India by the amount raised.

Looking forward, Hyundai Motor India Ltd. is committed to continuing its investment in India by enhancing its product portfolio, advancing technological capabilities and bolstering its research and development (R&D) efforts post-IPO.

Hyundai Motor Company - Advertisements and Social Media Campaigns

The all-new SANTA FE | AI Campaign Compilation Film

Hyundai Motor’s AI-Driven Campaign: "Open for Imagination"

Hyundai Motor is redefining marketing creativity with its innovative AI-generated campaign for the all-new SANTA FE SUV. The campaign, titled "Open for Imagination," encourages Instagram users and adventure enthusiasts to visualize their dream destinations in a unique, interactive way.

AI-Powered Creativity

The campaign uses a customized text-to-image AI model to generate bespoke images that seamlessly incorporate the all-new SANTA FE into fantasy settings. From lush mountainscapes to futuristic cityscapes, the SUV's bold, boxy styling, large tailgate and spacious interior provide the perfect backdrop for outdoor adventure and imaginative exploration.

On Hyundai Worldwide's official Instagram account, users can create personalized images of dream destinations featuring the SANTA FE. This interactive experience highlights the SUV's 'Open for More' concept, inviting users to dream big and explore the limitless possibilities it offers.

Engaging Influencer Activation

Social media influencers brought the campaign to life by using voice recognition technology integrated with the AI model. Sitting inside a real SANTA FE, they visualized dream destinations projected on a large LED screen, showcasing how the SUV can complement any adventure.

Inspiring Outdoor Adventures

By merging cutting-edge AI with the all-new SANTA FE’s adventurous spirit, Hyundai is inspiring users to "open for more" in their lives—whether it’s through outdoor exploration or imagining the impossible.

Hyundai Motor Company - Awards and Achievements

Hyundai's 2024 Accolades and Global Recognition

Hyundai Motor Company continues to garner international acclaim. Here's a roundup of Hyundai's recent achievements:

World Car Awards 2024

World Performance Car: The Hyundai IONIQ 5 N earned top honors, showcasing Hyundai’s prowess in delivering exhilarating driving experiences combined with cutting-edge electric technology.
Hyundai's sister brand Kia EV9 dominated with two awards:
- World Car of the Year
- World Electric Vehicle

TopGear.com Electric Awards 2024

The Hyundai IONIQ 5 N was crowned Best EV Hot Hatch, highlighting its impressive combination of electric performance, sporty design and practicality.

2024 Red Dot Award

The Hyundai SANTA FE secured a win in the Product Design: Cars and Motorcycles category, a testament to its bold aesthetics and innovative design language.

iF Design Awards

Hyundai boasts a stellar record with over 20 iF Design Awards, marking a decade of consistent design excellence in categories spanning transportation and innovation.

2023 GOOD DESIGN Awards

Hyundai received six top honors, including four in the Transportation category, reflecting the brand's commitment to innovative and user-centric automotive solutions.

The Car Connection’s Best Electric Car To Buy

For the second consecutive year, the IONIQ 5 was recognized as the Best Electric Car To Buy, underlining its unmatched appeal in the EV market.

2022 Top Safety Pick by IIHS

The Hyundai NEXO earned this prestigious safety accolade, reinforcing Hyundai’s dedication to advanced safety features and reliability.

Brand Valuation

Hyundai Motor Company’s global influence is highlighted by its brand valuation reaching $23 billion, securing the 30th spot globally in Interbrand’s Best Global Brands 2024 rankings.

Hyundai Motor Company - Competitors

Hyundai operates in a highly competitive global automotive market, contending with several major manufacturers. Some of which are:

Toyota Motor Corporation
Volkswagen
General Motors (GM)
Ford Motors
Nissan
Honda Motors
Fiat
Renault

Hyundai Motor Company - Future Plans (India)

Hyundai Motor India (HMIL) has set ambitious goals for its expansion in India, with plans to invest INR 32,000 crore between 2023 and 2032. This investment is aimed at reinforcing its leadership in the Indian automotive market, with a focus on sustainable growth and cutting-edge technologies. Key initiatives include:

Increase in Production Capacity

Hyundai intends to raise its production capacity from 824,000 to 1.1 million units by 2028. This expansion is designed to cater to the growing demand for vehicles in both domestic and export markets, ensuring Hyundai can meet the needs of its expanding customer base.

Development of New Products and Platforms

As part of its expansion strategy, Hyundai plans to develop new products and platforms, focusing on both traditional internal combustion engine (ICE) vehicles and electric vehicles (EVs). This initiative will help Hyundai diversify its product offerings to appeal to a broader audience.

Introduction of New Models

Hyundai will continue to innovate by launching new models, including vehicles catering to the growing demand for electric and hybrid cars. This will support its efforts to stay competitive in a rapidly evolving automotive market.

Strengthening Presence in the Battery Electric Vehicle (BEV) Market

Hyundai is committed to strengthening its position in the Battery Electric Vehicle (BEV) market in India. With the rise in demand for eco-friendly alternatives, Hyundai aims to expand its BEV offerings, contributing to the nation’s shift toward greener transportation.

Launching Hybrid Vehicles

In addition to fully electric models, Hyundai plans to launch hybrid vehicles, offering customers more choices in reducing their carbon footprint while enjoying the flexibility of both electric and gasoline powertrains.

Localization of EV Supply Network

A key aspect of Hyundai's strategy is to localize the EV supply network in India, including the production of battery systems, cells and drive systems. This initiative aims to reduce costs, improve supply chain resilience and support the development of a sustainable EV ecosystem within the country.

Carbon Neutrality by 2045

Hyundai is committed to achieving carbon neutrality by 2045. The company’s roadmap includes electrifying its product lineup and investing in alternative energy sources such as hydrogen. This effort aligns with Hyundai’s global sustainability goals and aims to reduce the environmental impact of its operations.

Software-Defined Vehicles

Hyundai plans to leverage data from vehicles, traffic signals, infrastructure and satellite navigation to create a new mobility system. By integrating these data sources, Hyundai aims to build software-defined vehicles that offer enhanced connectivity, improved navigation and smarter, more efficient mobility solutions for the future.

Creation of Mobility Hubs

In a bold vision for the future, Hyundai plans to develop mobility hubs that integrate air taxis, autonomous vehicles and social interaction spaces. These hubs are designed to facilitate seamless, multi-modal transportation options and create new community spaces for consumers to interact with the future of mobility.

FAQs

Is Hyundai a Chinese or Korean car?

Hyundai is a Korean car brand. It is headquartered in Seoul, South Korea, and is one of the largest automakers in the world.

Who is the owner of Hyundai?

Hyundai Motor Group is the owner of Hyundai.

Who are the main competitors of Hyundai?

The main competitors of Hyundai include Ford, Volkwagen, Honda, Toyota, Nissan, General Motors, Renault, Fiat, and more.

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