Hyundai’s Market Share in Reverse Gear-Time for a Pit Stop

Hyundai Motor India has sent a dedicated fact-finding team to its Indian operations after the company’s market share in the country’s fiercely competitive passenger vehicle (PV) segment dropped to its lowest level in 12 years. The move comes amid a rapidly evolving automotive landscape, where new entrants and shifting consumer preferences are reshaping the pecking order among top carmakers.

Key Highlights

Hyundai’s combined market share, along with Maruti Suzuki, has fallen to a 12-year low in the first half of FY25, signaling a notable shift in India’s PV market dynamics. This decline is attributed to the growing success of rivals like Mahindra & Mahindra and Tata Motors, who have made significant inroads, especially in the SUV segment.

Mahindra’s market share has surged to an all-time high of 12.5% in the first half of FY25, driven by strong demand for its SUV lineup. Tata Motors, after peaking at an 11-year high of 14% in FY23, currently holds 13.3% market share.

Hyundai’s own performance has seen a sharp month-on-month drop, with February sales falling to 38,156 units and a market share of 12.58%, down from 59,858 units and 12.85% in January. This decline has pushed Hyundai behind Mahindra and Tata in the monthly rankings, intensifying the battle for the number two spot behind Maruti Suzuki.

The broader industry is also facing headwinds, with overall wholesale PV volumes (including exports) registering a 1% year-on-year decline in the second quarter of FY25. Despite this, October saw record PV sales, indicating underlying demand remains resilient even as preferences shift toward feature-rich SUVs and electric vehicles.

Financially, Hyundai reported a marginal decline in revenue and a 19% drop in consolidated net profit for the December 2024 quarter, citing subdued domestic demand, lower exports, and geopolitical uncertainties as key factors impacting performance.

In response, Hyundai is accelerating its expansion strategy, committing significant investments to boost production capacity at its Chennai and Pune plants, and focusing on electrification to capture the growing EV market.

The fact-finding team’s mission is to assess market conditions, identify challenges, and formulate strategies to regain lost ground in a market that remains crucial for Hyundai’s global ambitions.

Sources: The Economic Times, The Print, Equitymaster