Doing business in India: Hyundai, KFC, Pizza Hut learn it doesn't pay to cause offence

Following a social media outcry in India, and calls for a boycott of Hyundai, which has a major presence in India's large consumer market, the South Korean government on Tuesday was forced to firefight and said it "regretted the offence caused to the people of India" after a Pakistan dealer of Seoul-headquartered automobile manufacturer Hyundai posted a social media message  - now deleted - indicating support for separatists in Kashmir

Feb 08, 2022
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Hyundai, KFC, Pizza Hut

Following a social media outcry in India, and calls for a boycott of Hyundai, which has a major presence in India's large consumer market, the South Korean government on Tuesday was forced to firefight and said it "regretted the offence caused to the people of India" after a Pakistan dealer of Seoul-headquartered automobile manufacturer Hyundai posted a social media message  - now deleted - indicating support for separatists in Kashmir. 

India's Ministry of External Affairs (MEA) spokesperson Arindam Bagchi tweeted that South Korean Foreign Minister Chung Eui-yong Tuesday to his counterpart  S Jaishankar, to convey his deep regret. "A statement was also issued by Hyundai Motors conveying its apology to the people of India, and making it clear it does not comment on political or religious issues," the Indian government said.

South Korea's Ambassador to India Chang Jae-bok had been summoned on Monday and had been made aware of India's "strong displeasure" over "an unacceptable social media post".

"It was highlighted that this matter concerned India's territorial integrity and there could be no compromise," a statement tweeted by Bagchi said.

Earlier Hyundai had issued a lengthy statement clarifying that the company, which is one of the world's largest carmakers, does not comment on political or religious issues of any country.

"It is clearly against Hyundai Motor's policy that the independently-owned distributor in Pakistan made unauthorised Kashmir-related social media posts from their own accounts," Hyundai said.

This was after sustained protests in India targeting Hyundai, particularly on Twitter, where #BoycottHyundai has been trending and users have said they will cancel orders for the South Korean company's cars. The Pakistani dealer's post also triggered a political kickback, with Indian Commerce Minister Piyush Goyal demanding Hyundai be "more forceful in their unequivocal apology".

On Sunday Hyundai reiterated its commitment to the Indian market, one of its major business destinations. 

"Hyundai Motor India has been committed to the Indian market for more than 25 years now and we stand firmly for our strong ethos of respecting nationalism," the company said.

The controversy erupted after an unverified Twitter handle - @PakistanHyundai - posted a message in support of a 'Kashmir Solidarity' day, and flagged what it called a "struggle for freedom".

Hyundai is the second-largest car manufacturer in India after Maruti Suzuki. The company sells 12 models, including Creta - the popular subcompact crossover SUV. In December, Hyundai said it plans to invest around ₹ 4,000 crore in India towards the production of six electric vehicles by 2028.

On Monday American chain KFC had similarly apologised following outrage on social media over a post from its Pakistan-based franchise supporting separatists in Kashmir.
Another American chain Pizza Hut also issued a statement saying "it does not condone, support or agree with the contents of a post circulating in social media" after facing backlash over an Instagram post on Kashmir by its official handle in Pakistan,  PTI news agency and other Indian media said. 

Both KFC and Pizza Hut are subsidiaries of US-based Yum! Brands that also owns popular QSR brand Taco Bell.

"We deeply apologize for a post that was published on some KFC social media channels outside the country. We honour and respect India, and remain steadfast in our commitment to serving all Indians with pride," according to a message on KFC India official account on Twitter.

Pizza Hut, in its statement, said "it does not condone, support or agree with the contents of a post circulating in social media. We remain steadfast in our commitment to serve all our brothers and sisters with pride."

Earlier, in a social media post, a verified account of KFC had supported the separatists in Kashmir and posted "Kashmir belong to Kashmiris."

Similarly, an Instagram post from the verified account of 'Pizzahutpak' had said, "We stand with you. Kashmir Solidarity Day."

Both the social media posts have been deleted after #BoycottKFC and #BoycottPizzaHut started trending on Twitter.

KFC had officially entered the Indian market in June 1995 by opening a restaurant in Bengaluru, amid some controversy.  Now, it operates over 450 stores in India through its franchise partners, which includes RJ Corp-owned Devyani International and Sapphire Foods.

Pizza Hut had forayed into India in June 1996. It operates around 500 stores through its franchise partners.

(SAM)

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