Hyundai Motor India Limited (HMIL) has set a new benchmark in the automotive industry with its recent long-term wage settlement agreement. The company has successfully negotiated a three-year deal with the United Union of Hyundai Employees (UUHE), promising substantial salary increases and enhanced benefits for its workforce.

Key Highlights of the Agreement

• Duration: The agreement spans from April 1, 2024, to March 31, 2027.
• Salary Increase: A total hike of INR 31,000.00 per month, structured over three years.
• Distribution: The increase will be implemented in the ratio of 55%, 25%, and 20% over the three-year period.
• Employee Coverage: The agreement benefits 1,981 employees, representing 90% of HMIL's technician/workmen cadre.

Industry-Leading Benefits Package

Hyundai Motor India has not only agreed to a significant salary increase but has also maintained its position as an industry leader in employee welfare. The revised compensation package includes:

1. Best-in-class health coverage
2. Advanced wellness programs

Mr. Youngmyung Park, Function Head - People Strategy at HMIL, emphasized the company's commitment to its workforce, stating, "At Hyundai, our people are the cornerstone of our success. This agreement, built on mutual trust, respect, and constructive dialogue, reflects our shared commitment to fostering a progressive workplace culture that prioritizes employee welfare and supports long-term organizational growth."

About United Union of Hyundai Employees (UUHE)

The UUHE, registered in 2011, serves as the officially recognized representative body for HMIL's workforce. The union represents a significant majority of the company's technician and workmen cadre, showcasing its strong position in advocating for employee welfare and rights.

This landmark agreement underscores Hyundai Motor India's dedication to maintaining positive industrial relations and ensuring the well-being of its employees. By setting new standards in compensation and benefits, HMIL continues to strengthen its position as an employer of choice in the competitive automotive sector.

Hyundai Motor India is gearing up for a robust growth trajectory, leveraging both domestic market recovery and strong export performance following recent GST rate cuts. The automaker's strategic shift comes amid changing market dynamics and regulatory reforms in the Indian automotive sector.

Domestic Sales and Export Performance

Despite facing headwinds in the domestic market, Hyundai has managed to maintain a balanced approach:

• Domestic sales saw a decline of 11.20% to 220,233 units during April-August.
• Exports, however, showed significant growth, increasing by 12.45% to 80,740 units in the same period.

Strategic Shift and Market Focus

Tarun Garg, Whole-time Director at Hyundai Motor India, shed light on the company's strategic decisions:

• During the domestic market slowdown over the past 6-8 months, Hyundai increased its focus on exports.
• This shift was partly due to previous capacity constraints that limited the company's ability to pursue a dual-market approach effectively.

Anticipated Market Recovery

The recent GST reforms are expected to play a crucial role in Hyundai's growth strategy:

• The company anticipates that GST rate cuts will boost sentiment in both rural and urban markets.
• This positive sentiment is expected to drive a recovery in domestic sales.

Capacity Expansion Plans

To support its ambitious 'double engine' growth strategy, Hyundai is significantly expanding its production capacity:

• The Talegaon plant in Maharashtra will add 170,000 units of capacity in October.
• This expansion will increase Hyundai's total annual capacity from 824,000 to 994,000 units.
• An additional capacity of 80,000 units is planned for the Talegaon facility by FY28.
• Upon completion, Hyundai's total annual production capacity will reach nearly 1.1 million units.

Export Revenue Contribution

Hyundai's focus on exports has already shown results in its revenue mix:

• Export revenue contribution has increased from 21% last year to 27% in the first quarter of this fiscal year.

This strategic realignment and capacity expansion demonstrate Hyundai Motor India's commitment to capitalizing on both domestic recovery and export opportunities. As the automotive market evolves post-GST reforms, Hyundai's 'double engine' approach positions it to navigate the changing landscape effectively and drive growth across multiple fronts.