Hyundai Motor India Ltd. (HMIL), once firmly positioned as the country’s second-largest passenger vehicle manufacturer, is rolling out a multi-pronged strategy to reclaim its spot after slipping to fourth place in April 2025. With intensifying competition from Mahindra & Mahindra and Tata Motors, Hyundai is now prioritizing rural outreach, institutional sales, and the used car market, alongside aggressive new product launches. The company’s Chief Operating Officer, Tarun Garg, expressed strong confidence in a resurgence, banking on a robust product pipeline and a new manufacturing plant in Pune to help regain lost ground and reinforce market dominance.
Market Share Shake-Up: Hyundai Falls to Fourth Place
Hyundai’s drop from the number two position in India’s competitive passenger vehicle segment has prompted swift introspection and recalibration. In April 2025, the automaker registered retail sales of 43,642 units, capturing 12.47% of the market, according to data from the Federation of Automotive Dealers Associations (FADA). This placed the Korean manufacturer behind Maruti Suzuki (39.44%), Mahindra & Mahindra (13.83%), and Tata Motors (12.59%).
While Hyundai concluded FY25 as a strong second in cumulative sales, the monthly dip highlights the rising momentum of domestic automakers capitalizing on consumer preferences for SUVs and robust after-sales service networks in semi-urban and rural markets.
Strategic Response: Targeting Core and Emerging Segments
In response to this competitive realignment, HMIL has initiated a comprehensive strategy aimed at reinforcing its presence across high-growth segments. COO Tarun Garg, speaking during an earnings call, underscored the company’s increased focus on rural, institutional, and pre-owned car sales, stating that the firm is “very passionate about our numbers, our domestic dominance.”
The company’s approach includes expanding its dealership network beyond metropolitan centers, bolstering customer acquisition in Tier 2 and Tier 3 cities, and enhancing trade-in programs to grow its certified pre-owned vehicle operations—a segment gaining considerable traction post-pandemic.
Product Pipeline and Capacity Expansion
Hyundai is also banking on its core strength—an aggressive product development cycle. Garg confirmed that the automaker’s upcoming model portfolio will span all major segments and fuel types, aligning with shifting consumer demand and regulatory requirements.
Central to this growth strategy is the company’s new manufacturing facility in Pune, expected to become operational by the third quarter of FY26. The plant is envisioned as a cornerstone in Hyundai’s plan to scale up production capacity and enable faster time-to-market for future launches.
“The new plant, combined with our evolving model cycle, is designed to help us regain both volume and market share,” said Garg, adding that Hyundai remains committed to balancing profitability with growth and market penetration.
Navigating a Competitive Landscape
India’s passenger vehicle market has evolved rapidly, with consumers showing increasing preference for domestically manufactured SUVs and value-driven offerings. Mahindra & Mahindra’s aggressive SUV push and Tata Motors’ expanding electric vehicle lineup have successfully challenged Hyundai’s urban-leaning product mix.
However, Hyundai’s legacy of engineering reliability, brand recognition, and access to global R&D could serve as vital levers in its counteroffensive. The company is also expected to explore synergies between its traditional ICE offerings and future-forward EV models as part of its long-term growth plan in India.
Industry Outlook and Final Thoughts
Total domestic passenger vehicle retail sales stood at 3,49,939 units in April 2025, reflecting a modest year-on-year growth of 1.55%. The data points to a market that, while growing, is witnessing aggressive reshuffling of leadership ranks.
Hyundai’s swift strategic recalibration in response to recent setbacks signals not just damage control but a renewed commitment to long-term competitiveness. With a focus on underpenetrated market segments, a fortified product roadmap, and renewed manufacturing capacity, the automaker is well-positioned to stage a comeback in India’s dynamic automotive market.
As market dynamics continue to evolve, Hyundai’s performance in the upcoming quarters will be closely watched by investors and industry analysts alike—not only as a measure of brand resilience but also as a reflection of the shifting contours of India’s mobility future.
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