Far from glory days, Hyundai begins quest for 15% share in India's car market with Venue compact SUV launch

Hyundai has launched the new Venue in India.

Hyundai Motor India, whose domestic passenger vehicle (PV) market share has dropped below 14%, has begun its drive to reclaim a 15% share with the launch of the new Venue compact SUV, the first of 26 models the company plans to introduce by FY30.

According to official data from the industry body Society of Indian Automobile Manufacturers (SIAM), Hyundai had a share of 17.39% in the domestic PV market in FY21. However, there has been a gradual decline over the years, to 15.68% in FY22, 14.59% in FY23, 14.57% in FY24, 13.92% in FY25 and 13.25% in FY26 (April-September).

At present, Hyundai's internal combustion engine (ICE) portfolio comprises hatchbacks like the Grand i10 Nios and the i20; sedans like the Aura and the Verna and SUVs like the Exter, Venue, Creta, Alcazar and Tucson. The company sells electric SUVs like the Creta Electric and the Ioniq 5.

Hyundai: Domestic PV Volumes & Market Share

In the more recent years, handsome performances by homegrown original equipment manufacturers (OEMs) like Mahindra & Mahindra and Tata Motors due to a robust SUV portfolio, new product launches in internal combustion engine (ICE) and electric vehicle (EV) segments, and strategic pricing decisions have impacted Hyundai's market share.

Besides, the Creta-maker had capacity constraints as well, with the utilisation at its Chennai plant being well over 90% to cater to the domestic and export markets.

However, the company is bullish about its future prospects as it has already outlined an investment plan of Rs 45,000 crore by FY30 to drive the next phase of growth, which includes 26 launches (new nameplates, full model changes, derivatives and facelifts/product enhancements).

The commencement of vehicle production at the Talegaon plant (Pune), which Hyundai acquired from General Motors, also means that the company will not face capacity constraints for the next few years.

Hyundai has an annual installed production capacity of 8,24,000 units at its Chennai plant. The Talegaon plant has added 1,70,000 units, taking the total capacity to 9,94,000 units per annum. An additional capacity of 80,000 units at this facility will come in 2028 taking the overall capacity to 10,74,000 units.

At the launch of the new Venue compact SUV, the company's Managing Director, Unsoo Kim, said: "Today marks a pivotal moment for Hyundai Motor India as we step into the growth roadmap FY30. Our fundamentals are strong, strategy is clear, and the team is energised. Most importantly, we deeply value the trust of Indian customers earned over the past 29 years of our existence."

"At our recent Investor Day, President and CEO of Hyundai Motor Company (HMC), Jose Munoz, announced that by FY30, we aim for a 15% market share in India, supported by 11,00,000-unit production capacity," Kim said.

"This begins with the launch of the new-generation Hyundai Venue -- first of 26 upcoming models, including seven all-new nameplates. India is poised to become a strategic global manufacturing hub for HMC, with exports projected to account for 30% of our total production by FY30," he added.

Kim observed that Hyundai's commitment to India is backed by a significant investment of Rs 45,000 crore by FY30. "Hyundai Venue is the first model from our Pune facility. With phase 1 production underway, our annual manufacturing capacity nears 10,00,000 units," he said.