Even as competition heats up in India’s passenger vehicle market, Hyundai Motor India is gearing up for a renewed charge, with a sharper focus on balance, expanding its manufacturing capacity, and enhancing localisation in both production and R&D.

“We’ve always said that our growth must be competitive and responsible,” says Tarun Garg, whole-time director and COO of Hyundai Motor India, who is set to take over as managing director and CEO from January 1, 2026.

“We don’t want to chase numbers at the cost of fundamentals. What’s important is maintaining an equilibrium—between domestic and export markets, and between growth and responsibility,” Garg said at a select media roundtable ahead of the launch of the all-new Hyundai Venue.

That equilibrium, he believes, will help Hyundai regain lost ground. “In the domestic market, we are passionate about the No. 2 position,” Garg says. “And we will get it back as new models come in and as production capacity and offerings in the country, including electrics and hybrids, increase.”

Hyundai’s market share in India has hovered around 14% in FY25, though it has seen some recent dips, slipping in rankings during certain months. While the automaker continues to hold its position as the country’s second-largest car manufacturer, behind Maruti, this spot is increasingly being challenged by rivals such as Mahindra and Tata Motors, both of which have made strong inroads into the SUV and EV segments.

Garg, however, insisted that Hyundai remains well-positioned to retains its spot.

HMIL on Tuesday launched the all-new Hyundai Venue, which marks the first of 26 new models Hyundai plans to launch in India by 2030. The auto major recently said it planned to invest ₹45,000 crore by FY30 to fuel its growth vision in India through the 26 product launches.

The all-new Hyundai Venue and Venue N Line come with introductory prices starting at ₹7.89 lakh (ex-showroom). The compact SUV will be exclusively manufactured at HMIL’s state-of-the-art Pune plant for both domestic and global markets.

“The Venue will now be exclusively manufactured in India for global markets, reinforcing Hyundai’s ‘Make in India for the World’ vision,” he said.

Since its debut in 2019, the Venue has been one of Hyundai’s most successful SUVs, selling more than 700,000 units. “With the all-new Venue and Venue N Line, we are redefining the compact SUV space with advanced technology, superior safety, and exhilarating performance,” he added.

GST reforms boosted demand for SUVs

Garg credits India’s recent GST reforms for fundamentally reshaping buyer preferences. Under the new tax structure, cars under 4 metres in length and below 1,200 cc now attract just 18% GST, down from the earlier 29–31%. According to Garg, the reform has acted as a catalyst for SUV demand.

“There’s a narrative going around about how the GST cut has impacted car sales,” he says. “In the January–August period, the share of hatchbacks in overall PV industry sales was about 22.4%. In the September–October period, it came down to 20.4%, and in just October, it dropped further to 20%. This is simple wholesale data from industry body SIAM.”

Sedans, too, have seen their share shrink — from 8.5% in January–August to 7.9% in October. “So, I don’t know about that narrative outside,” Garg adds, “but it is very clearly still SUVs that are in high demand.”

In contrast, SUVs’ share in overall passenger vehicle sales rose from 54% in the first eight months of the year to 56.9% in September–October, and further to 57% in October alone. “It is still SUVs that are the toast of the nation,” Garg says. “And actually, it is the mid-to-large SUV segment that has seen the maximum growth after the GST rate cut. The contribution of hatchbacks continues to come down.”

The mid-SUV segment, he points out, saw its share increase from 12.8% in January–August to 15% in October. “The customer had the same amount of money earlier and now. However, he or she can buy a bigger car now. The trends indicate that the customer is upgrading rather than downgrading. It is still all about aspiration,” Garg says.

He also mentioned that the hatchback segment remains strategically important for Hyundai. “Most of the new models in the coming years will be launched in the SUV segment, but hatchbacks will continue to be a key part of our portfolio,” he adds.