Hyundai Motor India targets No. 2 spot with new SUVs, higher production capacity

New Delhi: With two new SUVs, including an EV, lined up for launch and additional production capacity available, Hyundai Motor India Ltd is looking to scale up volumes to regain the lost number two position in the domestic passenger vehicles market, its Managing Director and CEO Tarun Garg said on Wednesday.

The company, which plans to launch a new mid-sized SUV in the festive season followed by an electric SUV in the sub-four metre segment is confident of beating industry growth in the second half of the fiscal, which will be marked by high base effect following accelerated demand due to GST rate cut of last year, Garg told reporters on the sidelines of annual session of Automotive Component Manufacturers Association of India (ACMA).

Hyundai Motor India Ltd (MHIL) expects its EV penetration to go up to industry level of about 7 per cent by next year with the new model coming in along with the existing models Creta EV and IONIQ 5.


"In the festive season, we are going to launch one more mid (size) SUV and then we will have one more EV, which will be a dedicated EV in the sub-four metre segment. These are the two segments which are growing the fastest," he said.

While the industry growth rate for the second half of the fiscal will be affected by the high base effect, Garg said, "For Hyundai, that effect will be neutralised because of those two new models."

In the first half of the last fiscal, the auto industry had struggled to post good growth, but it accelerated after the GST rate cuts on September 22, 2025, thereby making the base of the second half of last year high.

"Total industry volume for H2 (of the ongoing fiscal) could be 5-6 per cent. For us, we are expecting 8-10 per cent. Overall for the entire fiscal, the industry could grow at around 8-10 per cent and Hyundai is also looking for a similar growth for the full year," Garg noted.

In the April-August period this fiscal, he said HMIL is "already at about 13 per cent growth...and we can really look at continuing this momentum and end this year with maybe 8 to 10 per cent".

In the April-July period of FY27, PV wholesales in the domestic market have grown 27.1 per cent to 16,69,010 units against 13,13,135 units in the same period a year ago, as per SIAM data.

Asked if the company will scale up rapidly to get back its share and the number two position it had lost to Indian automakers M&M and Tata Motors Passenger Vehicles, Garg said, "Absolutely...we are very passionate (about the number two spot)."

Citing VAHAN registration for August, Garg said, "In the ICE (internal combustion engine) segment we are number two."

He said the company is scaling up its production capacity, especially at its Pune plant, which will have a total capacity of 2.5 lakh units annually by 2028 and 3 lakh units by 2030, up from the current 1.7 lakh units per annum.

Coupled with the Chennai plant capacity of 8.24 lakh units per annum, HMIL will have a total capacity of 11.24 lakh units per year, he added.

"We can take care of a very high double-digit growth, which we are expecting both from domestic and export markets, in the next five years with this kind of a capacity," Garg said.

When asked about EV penetration, he said the industry level is currently at about 7 per cent and for HMIL, with the new dedicated sub-four metre EV coming in, the company is looking to increase its electric vehicle penetration.

"Already Creta EV has also started selling about 1,000 cars per month and we can really leverage on the new EV...with the Creta EV and the new EV along with the IONIQ 5, these three cars should take us closer to industry penetration by next year," he said.

On festive season sales outlook, Garg said traditionally every festive season has been very good and it is not going to be very different this time too. Already, Onam has been very good with the company doubling sales compared to last year.

Garg said the company's products, especially SUVs, have gained a lot of traction in rural markets and the company is confident of maintaining the momentum. The rural penetration was the highest ever for Hyundai at 26 per cent in the last quarter. PTI