Hyundai Motor India has been pushed down the domestic rankings this year as Mahindra & Mahindra and Tata Motors gained ground in the passenger vehicle (PV) market, but the company remains ahead of both rivals in total volumes on the back of strong exports. While the Creta-maker has slipped to fourth position in domestic car sales, it continues to hold the number two spot in overall volumes, a reflection of its export scale and a deliberate strategy to balance growth with profitability.
Hyundai's export edge holds firm despite domestic reshuffle
For the six months from April to September in the current fiscal (FY26), Hyundai sold 2,71,780 units in the domestic PV market, behind Mahindra's 2,97,570 units and Tata's 2,73,688 units. Maruti Suzuki India remains the market leader by a wide margin at 7,95,446 units. However, when exports are included, Hyundai leads comfortably with total PV sales of 3,71,320 units, well ahead of Mahindra's 3,08,432 units and Tata's 2,78,977 units. The company's export contribution of nearly 27% has helped offset its domestic shortfall.
This divergence between domestic ranking and overall volumes has become central to Hyundai's strategy narrative. The company views exports not as a buffer but as an integral part of its operating model. The company's Whole-Time Director and Chief Operating Officer, Tarun Garg, told Moneycontrol that Hyundai's strength lies in its 'balanced growth' approach that focusses equally on volumes, profitability and market diversification.
Garg will succeed Unsoo Kim as the Managing Director and Chief Executive Officer of Hyundai with effect from January 1, 2026.
Domestic PV Volumes
| Year | Hyundai | Tata | Mahindra |
| FY26 (Apr-Sep) | 2,71,780 units | 2,73,688 units | 2,97,570 units |
| FY25 | 5,98,666 units | 5,69,245 units | 5,51,487 units |
| FY24 | 6,14,717 units | 5,82,915 units | 4,59,877 units |
| FY23 | 5,67,546 units | 5,44,391 units | 3,59,253 units |
| FY22 | 4,81,500 units | 3,73,138 units | 2,25,895 units |
| FY21 | 4,71,535 units | 2,24,109 units | 1,57,215 units |
| Year | Hyundai | Tata | Mahindra |
| FY26 (Apr-Sep) | 99,540 units | 5,289 units | 10,862 units |
| FY25 | 1,63,386 units | 2,847 units | 15,743 units |
| FY24 | 1,63,155 units | 2,648 units | 11,135 units |
| FY23 | 1,53,019 units | 2,557 units | 10,622 units |
| FY22 | 1,29,260 units | 1,995 units | 10,409 units |
| FY21 | 1,04,342 units | 775 units | 6,732 units |
| Year | Hyundai | Tata | Mahindra |
| FY26 (Apr-Sep) | 3,71,320 units | 2,78,977 units | 3,08,432 units |
| FY25 | 7,62,052 units | 5,72,092 units | 5,67,230 units |
| FY24 | 7,77,872 units | 5,85,563 units | 4,71,012 units |
| FY23 | 7,20,565 units | 5,46,948 units | 3,69,875 units |
| FY22 | 6,10,760 units | 3,75,133 units | 2,36,304 units |
| FY21 | 5,75,877 units | 2,24,884 units | 1,63,947 units |
"We did not want to join the price war"
Hyundai's export contribution is not incidental; it is strategic. Garg observed that Hyundai intentionally leaned on exports during a period when the domestic market was embroiled in aggressive price competition. "We did not want to join the price war as the market was very tough during the last one year before the Goods and Services Tax (GST) reforms came in. We are a listed company. The stakeholders, the shareholders, and the investors have expectations from us. We wanted to behave responsibly," he said, explaining the rationale behind the export push.
The company's export share has risen sharply. It reported an export contribution of 21% last year; that has moved to 27% year-to-date, and Garg says Hyundai targets 30% by FY30. Exports, he added, have been an important margin-preserving lever. "Exports gave us higher margins as well as precious foreign exchange for the country. As a listed company, there is a responsibility to have a very good balance between volume and profit."
Hyundai has maintained this balance by broadening its manufacturing base and product reach. Its vehicles are exported to more than 80 countries. Garg said Hyundai aims to make India its hub for emerging markets, leveraging scale efficiencies and localisation benefits. "We want to be the hub for the emerging markets for Hyundai Motor Company," he said.
New Venue leads Hyundai's domestic comeback
The product side of Hyundai's plan centres on the new Venue and a heavy model cadence through FY30. The new Venue, Garg said, represents a generational leap from the previous model on safety, build and software. It sits on Hyundai's global K1 platform, which uses advanced high-grade steel and hot stamping, and it moves ADAS capability from Level 1 to Level 2 with 16 features. It also brings 33 standard safety features and more than 60 safety features overall.
Hyundai has introduced several technology-led enhancements in the new Venue. "It is the first software-defined car in India by Hyundai. If you see from a controller OTA point of view, up to 20 ECUs are there. We have introduced a connected car navigation cockpit (ccNC) system and dual curved panoramic displays," Garg said. The model also features a surround view monitor, blind view mirror, and over 400 embedded voice commands, reflecting Hyundai's focus on technology integration.
Priced between Rs 7,89,900 and Rs 15,51,100 (ex-showroom), the new Hyundai Venue rivals the likes of the Maruti Suzuki Brezza, Tata Nexon, Kia Sonet, Skoda Kylaq and Mahindra XUV300.
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 and Alcazar. The company sells electric SUVs like the Creta Electric and the Ioniq 5. While the old Venue was exported to 27 markets, the new Venue will be shipped to 30 markets.
Pune plant to anchor capacity expansion
Capacity and utilisation matter to Hyundai's comeback plan. The company's Chennai plant has an installed capacity of 8,24,000 units, while the Pune facility, acquired from General Motors and recently renovated, has begun operations with 1,70,000 units of capacity. With a further 80,000 units planned at Pune in 2028, Hyundai's total installed capacity will rise to about 10,74,000 units per annum. Management sees the Pune plant as a key lever to serve the domestic market and expand export reach.
Garg described capacity as a tactical constraint that had held Hyundai back in the domestic market. "We did not have the capacity, and we also focussed on exports. But now the Pune plant has come in. We have already announced 26 models by FY30, with the new Venue being the first. As more and more models come in, as we improve our capacity utilisation, new technologies are going to come in with eight hybrids and five electric vehicles (EVs), we are very confident that we will get the number two position back in the domestic market," he said.
Hyundai's strategy combines scale and selective expansion. The Pune facility is being used efficiently by limiting model diversity and focussing on volume products. The company plans to fill most of the Pune plant's capacity with a single model, as of now, to streamline logistics, vendor alignment and cost management. "If you have too many models in a plant, you have to shift the entire vendor base and logistics. We work on efficiencies. Hyundai is known for having a capacity utilisation of over 90% all these years, and we intend to do the same going forward," Garg said.
Profit focus and "quality of growth"
The company's investor communication revolves around profitability and capital efficiency. Hyundai's Ebitda margin of 13.9% in Q2 FY26 was described by Garg as a validation of the "quality of growth" strategy. "We have always believed in moving in a balanced way. Balanced in terms of volume and profit, and balanced in terms of domestic and export. This is the quality of growth approach we have taken all these years and we intend to move forward on that approach going forward as well," he said.
The competitive backdrop has intensified. Tata and Mahindra have accelerated product and volume gains in recent months, pushing Hyundai down the domestic ladder. Mahindra's robust SUV line-up, led by the Scorpio-N, XUV700 and Thar Roxx, has seen sustained demand, while Tata's Nexon and Punch have consolidated the company's presence in the compact and micro SUV segments. For Hyundai, which itself is quite strong in the sub-4-metre SUV segment, this represents a clear tactical challenge.
Product, technology and customer trends
Hyundai's response lies in its product depth and refresh cycle. Garg pointed out that compact SUVs remain the fastest-growing segment in the market and a key strength for Hyundai. "If you compare, in the last 10 years, hatchbacks have come down by about 27-28% in terms of contribution. They were at 50% earlier, but now around 22%. And all that 27-28% has gone to the Exter segment (micro SUV) and the Venue segment (compact SUV)," he said.
The compact SUV segment is the single largest segment in India's PV market, with a share of 25% in FY25, while the micro SUV segment accounted for 6% during the fiscal.
The changing buyer profile also supports Hyundai's strategy. Garg said that in the Venue, 45% of sales come from first-time buyers, many of whom are shifting directly from two-wheelers to compact SUVs. "The Venue customer is younger than an average Hyundai customer," he noted, suggesting that the company's appeal among new and younger buyers remains intact despite short-term market shifts.
Hyundai's FY30 roadmap
Hyundai's longer-term target is to achieve a 15% domestic market share by FY30. Achieving that goal, Garg said, will require a "360-degree plan" covering product, technology, finance and network. "Our global CEO has given a comprehensive plan, which includes 26 models, capacity of nearly 11,00,000 units, Hyundai Capital coming in, new technologies in terms of hybrids, CNG and EVs, 50% plus cleaner fuels by FY30, entry into new segments like MPVs and off-roaders, dealer development, service and marketing," he said.
The upcoming powertrain mix will include eight hybrids and five EVs by FY30. Hyundai believes this combination, supported by access to hybrid, plug-in hybrid, battery-electric and hydrogen technology, will allow it to meet tightening fuel efficiency and emission norms, including the upcoming CAFE 3 standards. Garg said Hyundai has historically complied with all regulations and remains confident about meeting the new norms once finalised.
Market outlook
On the macroeconomic side, Garg expressed optimism that GST 2.0 reforms will sustain the automobile industry's recovery. "Now we will come back to the 4.5-5% compound annual growth rate (CAGR) thanks to the GST 2.0 reforms. If you see a swing from -1.5% to +5%, the swing is almost 6.5%. This is very healthy and we are very thankful to the Prime Minister for bringing in GST 2.0 reforms because that has given a new life to the Indian automobile industry and the Indian economy," he said.
Hyundai expects the domestic PV industry to grow at a CAGR of around 5.5% till FY30, and projects its own CAGR at 7%, supported by the new product cycle and additional capacity. The company believes the GST 2.0 framework, along with improved sentiment and rural recovery, will provide the demand base for its next phase of growth.
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