Hyundai Motor India has revealed a significant tilt in consumer demand toward SUVs, which accounted for 68.5% of the automaker’s total sales in FY25. With strong traction for premium features such as sunroofs and Advanced Driver Assistance Systems (ADAS), the company aims to push SUV contributions beyond 70% in the coming fiscal year. Domestic sales reached 5,98,666 units, while exports stood at 1,63,386 units. Despite a marginal dip in overall sales, Hyundai’s stock maintained resilience, buoyed by optimism surrounding its technology-focused offerings and market leadership in key segments such as the Creta.
SUV Surge and Consumer Preference Shift
Hyundai Motor India’s FY25 performance underscores a transformation in consumer preferences, with SUVs dominating its portfolio. The automaker sold 7,62,052 units during the year, slightly below the 7,77,876 units recorded in FY24. However, what stands out is the 8% rise in SUV share—jumping to 68.5% of total sales. This shift signifies a growing appetite for larger, feature-rich vehicles among Indian buyers.
The Creta, Hyundai’s flagship SUV, emerged as the best-selling model in March, with 18,059 units sold domestically. Complementing the Creta, other SUV models such as the Venue, Alcazar, and Tucson contributed robustly to the brand’s stronghold in the segment.
Premium Features Drive Growth
A key driver of Hyundai’s FY25 strategy has been the increased penetration of premium features. Over 53% of the vehicles sold were equipped with sunroofs—offered in 12 of the company’s 14 models—indicating consumer willingness to invest in elevated in-car experiences. Additionally, the uptake of ADAS variants surged, doubling from 6.7% in FY24 to 14.3% in FY25.
This reflects a broader industry trend where Indian customers, particularly in urban and semi-urban regions, are embracing global technologies and valuing enhanced safety, comfort, and connectivity.
Market Position and Strategic Outlook
Tarun Garg, Whole-Time Director and COO at Hyundai Motor India, emphasized the milestone achieved during FY25, noting that two out of every three vehicles sold were SUVs. This not only reaffirms Hyundai’s alignment with market demand but also its capacity to scale innovation.
The company’s strategic focus on SUVs and feature-rich offerings positions it well to benefit from shifting consumer behavior, particularly as competitors in the Indian market are also pivoting toward tech-forward vehicles.
Looking ahead, Hyundai anticipates the SUV share to surpass 70%, with plans to expand ADAS and smart mobility technologies across more models. The company’s investments in localizing components and enhancing production efficiency are expected to support this trajectory.
Stock Market Performance
On the stock front, Hyundai Motor India has demonstrated resilience despite a minor dip in total annual sales. Following the release of FY25 numbers, shares of Hyundai’s parent company in Korea remained largely stable, while Indian markets reflected investor confidence in the brand's premiumization strategy.
Market analysts interpret the SUV-led growth and increasing demand for premium features as a bullish sign for Hyundai’s performance in the Indian subcontinent. The doubling of ADAS penetration and consistent leadership in top-selling SUV segments are being viewed favorably by institutional investors.
As India continues to embrace advanced mobility solutions, Hyundai’s strategic pivot appears well-timed. With a diversified portfolio, deep market understanding, and consistent focus on innovation, the company is expected to maintain its competitive edge in the coming quarters.
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