Hyundai Motor India gets ₹517 crore GST demand and penalty order

Hyundai Motor India Ltd has been served a demand notice totalling ₹517.34 crore from tax authorities, which includes a penalty, over an alleged underpayment of GST compensation cess on specific SUV models.

According to a regulatory filing by the company, the Commissioner (Appeals) of the CGST Department in Tamil Nadu has issued an order upholding a demand for ₹258.67 crore in GST compensation cess, along with an equal amount as penalty. The issue pertains to an alleged shortfall in cess payments on certain sport utility vehicles (SUVs) for the period between September 2017 and March 2020.

The South Korean automaker said there is no impact on financial, operational or other activities of the company due to this order. “The company is reviewing the order and will exercise right to file appeal,” it said.

On July 21, Hyundai’s Creta SUV completed 10 years. The company has sold 1.2 million units of the mid-size SUV since its launch in July 2015.

“The journey of Hyundai CRETA is deeply emotional, not just for us, but for every customer who made it a part of their lives... Over the past 10 years, it has become the gold standard for the Indian SUV buyer,” Unsoo Kim, Managing Director, Hyundai Motor India Ltd, said.

Annual sales of Creta have more than doubled since its launch (92,926 units in 2016 to 186,919 units in 2024. Creta dominates the mid-size SUV segment with over 31% market share in the Indian automotive industry. The sunroof-powered variants contribute about 70% to Creta sales in the first six months of 2025. In 2025, the Hyundai Creta emerged as the top-selling model across all categories in 3 out of 6 months this year. The contribution of first-time buyers to the Hyundai Creta has gone up from 12% in 2020 to 29% in 2024.

“As India’s SUV ambitions grew, CRETA too grew with them and if I may dare say often grew ahead of these ambitions. From just 2 models in 2015 to 12 models today, the mid-SUV segment has become fiercely competitive, yet Hyundai CRETA continues to lead, grow and define the category it helped create,” said Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India.

Hyundai has projected low-single-digit domestic growth in FY26, aligned with industry trends. It aims to achieve a 7–8% export growth during the same period. The company is also preparing for the next phase of growth with a 26-model product pipeline by FY2030, comprising 20 internal combustion engine (ICE) vehicles and six electric vehicles. Upcoming eco-friendly powertrain introductions include hybrids, supported by its new Pune plant capacity.