Q] In an era where product discovery is happening through digital communities and influencers, how would you take your partnership with a celebrity like Shah Rukh Khan forward?
Virat Khullar: Shah Rukh has been with us for almost three decades. He is in the business of entertainment and enthralling consumers, and we are also in that business. The consumer has evolved, so marketers and people who provide entertainment should evolve too. If the consumer is on Instagram rather than linear TV, we should create content in the format they are actually absorbing. The films we create with him, whether for Mother’s Day, Holi or a launch, are now fragmented into content for social media, our website and television. Over the past five to seven years, media mixes have moved from linear TV to more digital and social. The essence of Mr Khan and his dominance remain because he has evolved.
Tarun Garg: We talk about intelligent mobility, and Shah Rukh is that intelligent mobility. He has moved with time and staying relevant across generations and audiences for 30 years is the beauty of it.
Q] Would you say Hyundai is 30 years old or 30 years young? Several brands that have crossed this milestone find it difficult to connect with the next generation.
Tarun Garg: Hyundai is 30 years young. At 30, a person is probably strongest, most ambitious, full of energy and passion, optimistic and looking at the future with energy. That is today’s Hyundai. We want to lead India’s transition towards a developed country by 2047, cleaner fuels, more localisation and making India for the world. We take pride in the 3.9 million exports we have done and 9.6 million cars sold in India. But the opportunity now is to build on customer trust and enter Hyundai’s second phase of growth in India, backed by huge investments, capacity expansion, EV infrastructure, technology and multiple powertrains.
Q] You recently announced the season 4 of Hyundai Spotlight, what have the first three seasons done for the brand that traditional automotive advertising couldn’t?
Virat Khullar: Advertising still remains to be an interruption. It comes during the break, while watching content. Spotlight on the contrary has become part of the content. Over three seasons, we have created music and cultural moments, national as well as regional, produced 18 songs that have delivered a quarter of a billion views.
Music spans generations, regions and cultures, and is not essentially limited to Gen Z. We have 600,000 YouTube followers and reviews showing that it is being consumed across age groups. These songs are played at festivals and sporting events. It is great to see advertising content go beyond generating purchase intention.
Q] What is new in Season 4, and do such platforms manage to build brand love beyond shares and likes?
Virat Khullar: We are going more regional and promoting newer formats of music. We have five very different kinds of singers, including a Marathi rock star like Sanju Rathore; and artists specialising in Punjabi and Hindi music. We are also targeting out-market consumers and making the brand more relevant to societal movements and cultures. If our music is playing in Ganpati pandals or Diwali events, branded content is becoming part of those moments. It is not a sponsorship with an integrated logo unit presence or something that appears once in 24 weeks of television. It is a 60-second or four-minute song where mobility is integrated into every song. We are becoming generic to storytelling. That is the dream of marketing: let the brand seep in rather than be rude to consumers.
Q] Hyundai’s market share has dipped from 17% in 2021 to about 12% in 2026. What is the reason?
Tarun Garg: Frankly, we were constrained by capacity. We wanted to add capacity but then COVID struck. We bought the General Motors manufacturing plant and changed almost everything, which took time. Now the plant is up and running. We have advanced three-shift operations in Pune and announced capacity expansion from 170,000 to 320,000 by 2030. Total capacity should reach almost 1.14 million. We have also announced 26 new models, including EVs, hybrids and more CNGs. Fifty per cent of our portfolio will be sustainable by 2030 and localisation will rise from 83% to 90%. Two new nameplates are about to be launched, including the Bayon in the mid-SUV space and Hyundai’s first mass-market dedicated EV.
Q] Hyundai saw domestic sales drop down by 2.3% in volume annually in FY2026 and yet Hyundai Motor India’s share of global sales in volume rose to a new high of 16%? How do you see this paradox?
Tarun Garg: We want both. We are passionate about the performance of the last 30 years and want to continue that. This year has been absolutely great, with GST 2.0 reforms and the economy doing well. Q1 GDP growth was 7.8%. India’s median age is 29 and the opportunities are significant. With investments of `45,000 crore, new models and technology, the road ahead looks very good. Our global CEO has announced that by 2030, Hyundai India will be the second biggest market for Hyundai globally, next to the US. I believe 2030 is too far; we will do it much before that.
Q] Mahindra and Tata have overtaken Hyundai in the passenger carmaker hierarchy, with an aggressive SUV push. Will Hyundai’s strategy be similar?
Tarun Garg: Today, SUV’s industry contribution is about 58%; Hyundai is already at 68%. We have a very strong SUV line-up, and both upcoming cars are SUVs. Our SUV contribution in urban and rural markets is 68%. One area where we could have done better is bringing EVs faster. But we are armed with a strong brand, products and a 360-degree ecosystem. We already have 183 DC fast charging stations and will take that to 600 by 2030. We are also doing full 360-degree localisation of the EV supply chain.
Q] What is the target for 2030?
Tarun Garg: We want to grow much faster than the industry. By 2030, we have announced a target of 1 million sales, market share of 15% plus and EBITDA margins of 11-14%. Now that we are listed, growth alone is not important. Sustainable growth is also important.
Q] What will Hyundai’s portfolio look like by FY30?
Tarun Garg: Fifty per cent of the portfolio will be cleaner fuels, comprising hybrids, EVs and CNG. The balance 50% will be ICE. SUVs could move from the current 68% to 75% plus. We will cover all segments and powertrains. We are investing heavily in R&D, products and technology, while increasing localisation. From the current 82-83%, we want to reach 90% in the next five to six years.
Q] Tata.Cars has 20% of their revenue coming from EV currently. How do the numbers stack at Hyundai?
Tarun Garg: With the new EV coming in, we are going to catch up. Today, 7-8% of the industry contribution is EVs. With this mass-market EV, we should be able to catch up with the industry contribution.
Q] Will you increase the marketing budget significantly this year, with your entry into the fourth decade?
Virat Khullar: I don’t know which marketer has ever replied with a ‘yes’ to that question. That is always a dream for us.
Tarun Garg: New models mean more marketing, so that will definitely drive up the marketing budget. But more important than budgets is how we bring in efficiency, relevance and affinities. That is the KPI of the marketing team. Every CEO is demanding, and I am no different.
Q] What is the one big challenge you have inherited as MD and CEO of Hyundai in India?
Tarun Garg: I see every challenge as an opportunity. The biggest opportunity is being in India at this time, with a strong legacy of 30 years of customer trust, and being part of the Hyundai Motor Group with access to its technologies. I would be very happy to bring into effect all the plans and strategies we have laid out for India and play a lead role in the growth of India in the next decade.
Q] Your appearance in Hyundai’s 30th anniversary ad was as much talked about as Shah Rukh Khan. Was that a perfect start to your tenure as the first Indian MD & CEO at Hyundai in the country?
Tarun Garg: It was a ‘wow’ moment for me and a perfect fan moment, of course. Shah Rukh was very kind and very understanding. This ad is much more than a commercial. It beautifully depicts how our 30 years have been built on trust, progress and pride, and how Hyundai is going to lead India’s transition. It talks about the longevity of Shah Rukh, the move towards EVs and me being the first Indian Managing Director of Hyundai. I am very proud of it.
