Hyundai plans two new SUVs to reclaim no 2 spot

New Delhi: South Korean automaker Hyundai said Wednesday it's aiming to reclaim the second position in the Indian car market with the launch of two new SUVs in the expanding mainstream segment later this fiscal year.

“While all categories are growing, the midsize SUV (C-SUV) and the sub 4m electric SUV are the two fastest growing segments in the market right now,” Tarun Garg, managing director & CEO at Hyundai Motor India told ET. “We will have two new vehicles here in the second half, which will help us grow ahead of the industry.”

He didn’t elaborate on the new models.


Garg said car sales in India are likely to grow by 5-6% in the second half of this fiscal year, on a high base. With incremental capacity from Hyundai’s plant in Talegaon, Maharashtra, and the introduction of the two new mass-market SUVs, Garg said he expects Hyundai to outpace the industry and expand volumes by 8-10% in fiscal second half.

Asked if the company will scale up rapidly to regain market share, Garg said, “Absolutely...we are very passionate (about the number two spot).” Hyundai currently trails Maruti Suzuki, Tata Motors and Mahindra & Mahindra in the Indian car market.

Citing Vahan registration data for August, Garg said, “In the ICE (internal combustion engine) segment, we are number two.” He said the company is scaling up capacity, especially at the Talegaon plant, which will have a total capacity of 250,000 cars per year by 2028, expanding to 300,000 units by 2030, from the current 170,000 units.

Along with the Chennai plant capacity of 824,000 vehicles, Hyundai India will have a total capacity of 1.124 million units per year, said Garg.

“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,” he said.

Hyundai also expects its electric vehicle penetration to reach the industry level of about 7% by next year, helped by the launch of a new model, adding to its current electric car lineup of Creta and IONIQ 5.

“Already Creta EV has 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.