Hyundai Motor India expects the sport utility vehicle segment to keep powering the domestic passenger vehicle market, as buyers continue to gravitate toward larger cars even after the post-GST price changes. Chief Operating Officer Tarun Garg said on Tuesday that SUVs have clearly emerged as the main growth engine, while smaller cars steadily lose ground.
After unveiling the refreshed Venue compact SUV, priced from Rs 7.89 lakh (ex-showroom), Garg said hatchbacks and sedans remain part of Hyundai’s mix, but their importance has waned. The GST structure, he noted, has worked in favour of SUVs rather than compact cars.
“There’s a lot of talk about how GST changes have influenced car sales,” he said. “Between January and August, hatchbacks accounted for 22.4% of total PV sales. By September–October, that dropped to 20.4%, and in October alone, they made up just 20%.” Garg, who will take charge as Hyundai Motor India’s Managing Director and CEO from January 1, added that the trend clearly shows where consumer preference lies.
SUVs now make up 71% of Hyundai’s total sales, a share that could climb to 80% by 2030. To strengthen its position after slipping to fourth place in overall sales, the company is banking on a robust product pipeline and significant investment. “We have a clear roadmap to grow faster than the industry,” Garg said.
“Our goal is a 7% CAGR, ahead of the industry’s 5.5%, and to capture over 15% market share by FY30. The Rs 45,000 crore investment we have planned will help us achieve this.”
The roadmap includes six derivatives, seven facelifts or upgrades, and seven all-new models over the next few years. Garg remains optimistic about the broader market’s trajectory, saying Hyundai expects a rebound in the second half of the fiscal year. “With GST 2.0 and price adjustments, demand should stabilise. After a flat first half, we see overall industry growth returning to around 5%,” he said.
