Hyundai Motor India’s FY26 sales fell 2.29 per cent to 584,906 units despite 8 per cent growth in India’s passenger vehicle market.Hyundai Motor India, which slipped from its No. 2 position in the Indian PV market in FY26, is betting big on a product-led revival plan even as domestic OEMs—Tata Motors and Mahindra & Mahindra—raced ahead of the Korean giant in the last financial year.
The company plans to introduce two new ‘high-volume’ SUV models in FY27 to boost overall sales.
“During this financial year (FY27), we shall introduce two completely new nameplates. One will mark the debut of our new localised dedicated-EV in the compact-SUV space; the other will further expand our presence in the ICE-SUV segment,” Tarun Garg, MD & CEO, Hyundai Motor India, said during the company’s Q4 earnings call.
The South Korean automaker is pinning hopes on these brand-new SUVs to give a fresh charge to its volumes which registered 17 per cent growth in April 2026 to 51,902 units on the back of strong market momentum. “Both these launches are expected to meaningfully boost our volumes and act as powerful catalysts for our next phase of growth,” he added.
“We are very passionate about our position and we will get it back sooner rather than later,” he pointed out.
According to Garg, the two new models will be introduced in the most ‘high-demand’ vehicle categories – compact SUV and mid-size SUV segments – which collectively command a lion’s share of the PV market in the country. “We are very confident…these two are very strong launches and they are in very high volume segments. So, I think we are very confident about the potential of these models.”
“The upcoming EV (compact SUV) will mark our entry into a new segment, while the ICE SUV will be in the mid-SUV category. Backed by these products and other initiatives, we remain confident of delivering domestic volume growth of 8 to 10 per cent in FY27,” Garg said.
According to reports, the company will launch the entry-level Inster EV – which will likely target the Tata Punch EV, and the i20-based Bayon crossover – that will rival the Maruti Suzuki Fronx – in this financial year.
For Hyundai, sales were 584,906 units in FY26 – a 2.29 per cent drop from FY25’s 598,666 units – despite the Indian PV industry registering healthy 8 per cent year-on-year growth to over 4.6 million units last fiscal.
In contrast, homegrown automaker Mahindra & Mahindra emerged No. 2 with 660,276 units in FY26, while Tata Motors secured the No. 3 spot with 651,261 units in the domestic market pecking order.
“We are very passionate about our position and we will get it back sooner rather than later,” Garg pointed out optimistically.
₹7,500 cr capex outlined for FY27
To execute its growth plan, Hyundai Motor India has earmarked a capex of ₹7,500 crore in the ongoing fiscal year, and, according to the company, nearly 45-50 per cent of the total amount will be diverted towards product-related investments as it prepares to launch the new models.
The carmaker plans to infuse 30 per cent of this earmarked capex towards its manufacturing plant expansion, including the Phase-2 project at its newly-commissioned Pune plant, as well as undertaking upgrades at its mother facility in Sriperumbudur, Chennai.
The two new SUVs will be manufactured at its Chennai plant where the total installed capacity stands at around 824,000 annual units.
The automaker expects its Pune plant capacity to reach 2,50,000 units by 2028 with an additional 70,000 units expansion post the commissioning of Phase 2, taking the total capacity to 320,000 units at this facility acquired from General Motors. “This will take our total capacity in Pune to around 320,000 units and overall capacity to more than 1.1 million units by 2030,” he added.
Growth strategy for exports
The two new models will also be exported to overseas markets and Hyundai Motor India also plans to strengthen exports in FY27 through market diversification. The company has outlined an export volume growth of 8-10 per cent, nearly half of its FY26 growth of 16 per cent.
“Even if you see the Middle East, we have a healthy backorder with us… once the geopolitical environment starts improving, we should get back the volumes strongly,” Saravanan T, Vice President – Finance, HMIL, said during the earnings call.
The management also announced that it commenced exports of the new second-generation Hyundai Venue in the last quarter of FY26 and added that India will serve as the global manufacturing hub for the model for Hyundai Motor Company. It also plans to bring Verna PE and Exter PE to overseas markets and aims to expand the Exter into left-hand-drive markets as well.
