Hyundai Motor India is setting an ambitious course for growth, targeting an 8-10% increase in domestic sales volumes for the financial year 2026-27. This push will be spearheaded by the introduction of two new sport utility vehicles: a mid-size internal-combustion engine (ICE) SUV and a compact electric SUV.
The strategic launches come after Hyundai experienced a 2.3% year-on-year decline in domestic sales in FY26, dropping to the fourth position in the Indian market, a standing it has not held in over two decades. Homegrown competitors Mahindra & Mahindra (M&M) and Tata Motors Passenger Vehicles surpassed Hyundai in sales during this period.
New Models to Drive Market Expansion
Tarun Garg, managing director and CEO of Hyundai Motor India, stated that both upcoming vehicles are expected to significantly boost volumes and act as a powerful catalyst for the company's next phase of growth. The new compact EV will mark Hyundai’s entry into the mass-volume electric vehicle segment, an area where it currently lacks a model compared to rivals like Tata Motors and M&M. The new ICE SUV, on the other hand, will further strengthen Hyundai's position in the highly competitive mid-SUV category, a segment currently led by its popular Creta model.
“These launches are positioned in high demand segments aimed at broadening our portfolio and deepening our presence,” Garg explained during a media conference call following the company’s fourth-quarter earnings announcement.
Investment and Manufacturing Capacity
To support its aggressive growth strategy, Hyundai plans to invest approximately Rs 7,500 crore in fiscal 2027, marking its highest-ever capital expenditure in recent years. The company is also aiming for EBITDA margins within the guided range of 11-14%.
Manufacturing for the new models will primarily take place at Hyundai’s Chennai plant. The company began operations at its Talegaon facility in Pune in 2025. Combined, the Chennai and Talegaon plants currently boast an annual production capacity of 9.94 lakh units. Hyundai intends to expand the Pune capacity to 320,000 units annually, bringing the overall capacity to 1.1 million units by 2030. Garg also indicated that Hyundai would explore exporting these two new nameplates in due course.