Hyundai India eyes homegrown play with No. 2 rank under fire

"Every country has its own situation. India is also different. But if I look back at history, we have maintained the second position. There are many ups and downs," said Kim, adding that Hyundai is among the rare foreign carmakers which has managed to maintain its position in India for such a long time.

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Hyundai's success has been remarkable in a market littered with failures. Fiat SpA, Ford Motor Corp, General Motors Co. and Daewoo Motor Co. that entered India in the mid-1990s have folded up. Others such as Toyota, Honda, Skoda and Volkswagen have tiny slivers of the market.

Free hand?

Garg becomes the first Indian to lead Hyundai in its three decades in India. But as is often wondered at global MNCs, will Garg have a free hand to steer the ship of Hyundai? Both Kim and Garg say yes.

"Hyundai Motor Corp. cannot control every detail. Most decisions are taken within HMIL, but for areas such as powertrain development and the product pipeline, support from the parent company is required," Kim said.

Garg asserts that even today, the Indian board and management maintain full control of the local operations.

"I am the chief operating officer, fully empowered, and everyone under me reports to me, including Korean expats and Indian expats. Similarly, C.S. Gopalakrishnan is the chief manufacturing officer, and under him are production, quality, and supply chain," Garg said.

"HMIL has set a new standard in empowering business heads who are local, with full responsibility and full accountability. The structure is very clear. It's not as if there is one structure for Korean employees and another for Indian employees," Garg said.