Hyundai Motor Co and its affiliate Kia Corp are facing criticism from Greenpeace East Asia for a slow transition to electric vehicles (EVs) in India, coupled with increased sales of gasoline-powered SUVs that challenge their decarbonization efforts.
In a report released on Tuesday, the environmental group noted that while Hyundai and Kia reduced per-vehicle tailpipe emissions in markets like Europe and South Korea between 2018 and 2023, emissions rose in at least seven other regions, including India—the world’s third-largest auto market. Together, Hyundai and Kia hold the No. 2 position in India, their fourth-largest market globally.
“Minimal electrification efforts and a focus on larger, more polluting vehicles such as SUVs have undermined their commitments to reducing emissions,” Greenpeace said. Hyundai currently offers six SUVs in India, with only one being electric. SUVs account for two-thirds of Hyundai’s sales in the country, significantly higher than market leader Maruti Suzuki’s SUV share of two-fifths.
Despite hurdles such as high EV costs, limited charging infrastructure, and range concerns, Hyundai and Kia have been more proactive than rivals like Volkswagen, Renault, and Toyota, which have yet to launch EVs in India. Hyundai plans to unveil its first locally manufactured electric SUV, the Creta EV, on Friday and aims to roll out four more EVs by 2030. Kia is set to debut its first locally produced EV this year.
With EVs currently comprising just 2% of India’s annual new car sales of 4 million, the government aims to increase this share to 30% by 2030. Greenpeace has also previously criticized other automakers, including Toyota and Volkswagen, for what it described as inadequate progress toward decarbonization.
