Hyundai CretaSUVs continue to maintain their stronghold among buyers in India, accounting for 71 per cent of Hyundai Motor India’s (HMIL) domestic sales in Q2 FY26. The company’s SUV lineup, including the Exter, Creta, and Venue, has seen strong penetration in rural markets, alongside a rise in diesel demand.
The carmaker sold 99,220 units of SUVs during the period, rising from 69 per cent to 71 per cent share, thus making them the largest contributor to the company’s overall sales. Diesel sales also grew 3 per cent, accounting for 23 per cent of total sales.
“More than 60 per cent of Hyundai’s buyers are under 40 years old, reflecting strong confidence in the brand,” said Tarun Garg, Whole-time Director & Chief Operating Officer during the Q2 post-earnings call.
Despite this, the Gurugram-headquartered company’s domestic sales fell 6.8 per cent year-on-year to 139,521 units, although exports saw an increase during the quarter.
“Wholesales and retails were affected; customers postponed purchases until clarity emerged,” said Garg, adding that the quarter was a “transformative step” for the industry.
Rural and urban markets
Hyundai recorded a strong recovery in both rural and urban markets, led by the Exter and Venue. The dip in overall domestic sales was partly due to delayed purchases ahead of GST changes for about 38 days (August 15 to September 22) and the transition between the old Venue phase-out and the launch of the new Venue. “Rural contribution reached a record 23.6–24 per cent this (Q2) quarter, with rural SUV share at 72 per cent, slightly higher than urban,” Garg said. Rural customers, who are relatively cost-conscious, along with GST clarity and a good monsoon, are expected to further boost sales.
The all-new Venue 2025, available in petrol, diesel, and diesel automatic variants, is expected to be a key driver in rural markets.
Profitability and exports
HMIL reported a strong EBITDA of ₹24,289 million, supported by a favourable product and export mix, cost optimisation, and quality of sales. “HMIL did not join the discount war even during the GST transition, which helped sustain profitability,” Garg added. Exports rose 21.5 per cent year-on-year, with 51,400 units shipped. Key markets driving growth included the Middle East and Mexico. The Aura and Venue saw strong demand in the Middle East, while hatchbacks like the Nios performed well in South Africa. The Alcazar also did well in new markets.
“Strong global demand and product competitiveness will help us exceed our FY26 export guidance,” Garg noted.
In recent times, the South-Korean carmaker has come under pressure due to aggressive competition from homegrown brands like Tata Motors and Mahindra & Mahindra.
With a series of launches planned, including one next week, Hyundai is looking to reinforce its foothold in an increasingly competitive market.
