Hyundai Unveils New Models to Reclaim Market Position

Korean automaker Hyundai is set to make a significant impact in the Indian automotive market by launching 26 new vehicles over the next five years. This ambitious plan comes as the company invests ₹7,000 crore this year to enhance its market presence amidst increasing competition from local manufacturers like Mahindra & Mahindra and Tata Motors. The new lineup will feature a diverse range of vehicles, including 20 internal combustion engine models, six electric vehicles, and strong hybrid variants, according to Hyundai India COO Tarun Garg.

Investment and Product Strategy

Hyundai’s commitment to the Indian market is underscored by its substantial investment of ₹7,000 crore in 2025. This financial backing will support the introduction of new models across various price segments. The company aims to cater to a broad audience by offering a mix of 20 internal combustion engine vehicles and six electric models, alongside strong hybrid options. Garg emphasized that the goal is to significantly increase Hyundai’s market share by launching innovative cars and technologies throughout the decade. The automaker plans to introduce eight new models by the fiscal year 2027, with a particular focus on SUVs, which are expected to drive sales.

In response to the competitive landscape, Garg noted that Hyundai is not engaging in a “discount war” with rivals like Mahindra & Mahindra and Tata Motors. Instead, the company is prioritizing a balance between volume, market share, and profitability. This strategic approach aims to maintain healthy operating margins while expanding its product offerings.

Electrification and Localisation Efforts

Hyundai is also making strides in the electric vehicle segment, with plans to enhance its existing lineup, which includes the Ioniq and Creta EVs. The company is focused on increasing the localization of its electric models to better meet the needs of Indian consumers. Garg mentioned that Hyundai is actively working on expanding its fast-charging network to support the growing demand for electric vehicles. This initiative is part of a broader strategy to ensure that Hyundai remains competitive in the rapidly evolving automotive landscape.

The emphasis on electrification aligns with global trends towards sustainable transportation. As the Indian market becomes increasingly receptive to electric vehicles, Hyundai’s efforts to localize production and enhance charging infrastructure will be crucial in capturing a larger share of this emerging segment.

Sales Performance and Future Outlook

Despite the ambitious plans, Hyundai’s sales in the domestic market saw a slight decline, with approximately six lakh units sold in the last fiscal year, down from 6.1 lakh units in FY24. Exports remained stable at around 1.6 lakh units in FY25. Hyundai India Managing Director Unsoo Kim expressed confidence in the company’s financial resilience, citing sustained revenues and healthy operating margins driven by effective cost control measures.

Looking ahead, Kim remains cautiously optimistic about domestic demand, acknowledging the challenges posed by geopolitical uncertainties and shifting consumer sentiment. The company anticipates that its domestic growth for FY26 will align with industry estimates of low-single-digit growth, while aiming for a more ambitious 7-8% increase in exports. This dual focus on domestic and international markets reflects Hyundai’s commitment to navigating the complexities of the automotive industry while pursuing growth opportunities.

Financial Performance and Challenges

In its latest financial report, Hyundai India recorded a 4% decrease in consolidated net profit for the fourth quarter ending March 2025, totaling ₹1,614 crore, compared to ₹1,677 crore in the same period the previous year. This decline was attributed to lower sales in the domestic market. However, the company’s total revenue from operations increased to ₹17,940 crore during the review period, up from ₹17,671 crore year-on-year.

The mixed financial results highlight the challenges Hyundai faces in a competitive market while also showcasing its ability to generate revenue and maintain profitability. As the company prepares to launch new models and expand its presence in India, it will be essential to monitor how these strategies impact its financial performance in the coming years.

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