Hyundai bets on affordable SUVs, sees double-engine growth
Hyundai Motor India expects a surge in under Rs 10 lakh SUV demand post-GST cut, with bookings rising ahead of the festive season. The company projects 5% industry growth by March, driven by domestic demand, exports, capacity expansion, and growing EV adoption.
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Hyundai Motor India is gearing up for a strong growth phase, driven by a renewed push in the sub-Rs 10 lakh SUV category and rising export momentum. The company expects the recent goods and services tax (GST) cut to significantly accelerate demand in the affordable SUV space.
CNBC-TV18 reported, Tarun Garg, COO & Whole-time Director at Hyundai Motor India said that SUVs under Rs 10 lakh will probably see very big growth. "If you give customers the right features — connectivity, ADAS, sunroof, automatics, this is a huge opportunity,” he said.
The GST cut is already showing results. Garg noted that bookings have surged in recent weeks, providing a much-needed boost to the auto sector. Hyundai forecasts that the Indian car industry will swing from a 2% decline until August to about 5% growth by March 2026. “That’s a 7% turnaround starting September,” he said, highlighting the perfect timing with the festive season.
Exports are strengthening Hyundai’s outlook further. As the automaker’s largest base outside Korea, India has recorded double-digit export growth this year. “With exports growing in double digits and domestic sales now picking up, this will be a double engine growth for Hyundai,” Garg added.
The company’s expansion plans are also on track, with a new manufacturing facility in Pune slated to come online in FY26, raising Hyundai India’s capacity close to 1 million units annually.
Meanwhile, Hyundai is closely tracking changing consumer preferences. “Electric penetration was stagnant at 2.4% for two years, but this August it has already reached 6%. The direction is very clear,” Garg said, noting the rising appetite for EVs alongside petrol, CNG, and hybrid vehicles.
