Shares of Hyundai Motor India Ltd (HMIL) slipped nearly 1% in early trade on Wednesday after the automaker elevated Tarun Garg, its current Whole-Time Director, to the position of Managing Director and Chief Executive Officer. HMIL, the Indian arm of the South Korean automaker, has also proposed to invest ₹45,000 crore in its expansion in India and to increase research and development (R&D) spending between FY26 and FY30.

Garg becomes the first Indian to head HMIL’s operations in the country since the South Korean automaker entered India with the Santro in 1996. He will take over from Unsoo Kim, the outgoing MD, who will return to South Korea to assume a strategic role at Hyundai Motor, effective December 31, 2025.

Reacting to the news, HMIL shares opened 0.97% higher at ₹2,435 against the previous closing price of ₹2,411.50 on the BSE. However, the auto heavyweight soon lost momentum and declined up to 0.96% to ₹2,388.25 in the early trade. The stock dropped as much as 2% from the opening high level of ₹2,436.45.

At the time of reporting, Hyundai Motor shares were down 0.31% at ₹2,404.10, with a market capitalisation of ₹1.95 lakh crore. HMIL shares, which made its market debut in October 2024, are up 24% against its initial public offering (IPO) price of ₹1,960 apiece.

In the calendar year 2025, the auto stock has risen 5%, while it rallied nearly 19% in the past six months, and 3.5% in a month.

In an exchange filing last evening, HMIL said that its board approved the succession plan for the managing director of the company. “In this regard we would like to inform that Unsoo Kim, current Managing Director, is returning back to South Korea to a strategic role at Hyundai Motor Company hours on December 31, 2025…Tarun Garg, presently serving as Whole-time Director of the Company will succeed Unsoo Kim, current Managing Director, of the company with effect from January 01, 2026, subject to approval of the shareholders of the company and in the intervening period will be MD & CEO designate,” the release noted.

According to the company, Kim resigned to return to South Korea and take on a strategic role at Hyundai Motor Company.

As per the company, Garg is a Mechanical Engineer from the prestigious Delhi Technological University (formerly Delhi College of Engineering), one of India’s top technological institutes. He also holds an MBA from the Indian Institute of Management (IIM) Lucknow, one of the country’s premier business schools.

Before joining HMIL, Garg had an illustrious career at Maruti Suzuki India Limited, where he began as a Management Trainee, gaining expertise in logistics and sales planning, and progressively advanced through several key roles. His journey at Maruti Suzuki included positions as Regional Sales Manager, Commercial Business Head, National Sales and Network Head, and ultimately, Executive Director of Marketing, Logistics, Parts, and Accessories.

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