South Korean companies rush into India to capture its young, 1.5 billion-strong market

South Korean companies are stepping up their push into India, targeting a market of 1.5 billion people and a population described as particularly young.

Manufacturers are expanding local production, while cultural-content companies are also seeking to reach Indian consumers. Hyundai Motor Group offers the clearest example. Hyundai and Kia together sold about 687,000 vehicles in India in 2021, but that figure rose to 852,000 last year.

To expand its market share, the group acquired a former General Motors plant in Pune, Maharashtra, last year. Once the facility reaches maximum operation in the second half of this year, Hyundai Motor Group will be able to supply up to 1 million vehicles a year to India’s domestic market.

Hyosung has continued expanding its power-equipment business in the country. After establishing a plant in Pune in 2015 to produce extra-high-voltage circuit breakers, the company raised its share of India’s market to more than 50% over the following decade. The company is also looking to India’s position as one of the world’s leading power producers and an exporter of electricity to neighboring countries.