Hyundai Motor India Ltd is set to achieve a significant milestone in its domestic sales this year, with SUVs expected to contribute to 60% of the total sales. The company’s COO, Tarun Garg, stated that models like Creta and the newly launched Exter have accelerated the growth in this segment. Despite concerns over the global geopolitical situation, Hyundai is confident in sustaining its overseas shipments momentum as exports have been increasing in the past three months.
Garg expressed optimism about reaching their target, saying, “We will end up with more than 60% at the end of the year, which is what we said at the beginning of the year…We are now almost reaching there.” He highlighted the success of their SUV models, stating, “For us, the good thing has been that SUV contribution has moved to 63% in October and year-to-date at 59%, as against the industry SUV percentage of 48%. So that has really helped us to outperform the industry in terms of January to October numbers.”
In October 2023, Hyundai Motor India Ltd recorded total sales of 68,728 units, showing a growth of 18.48% compared to the same month last year when they sold 58,006 units. From January to October, their total sales reached 6,43,535 units compared to 5,78,956 units in the previous year, reflecting a growth of 11.15%. The domestic market played a significant role in this growth, as sales during the period amounted to 5,09,910 units, indicating a 9.49% increase from the corresponding period of the previous year.
Garg attributed the success in SUV sales to the performance of their Creta model, saying, “The Creta continues to be an outperformer. With the year-to-date growth of 16%, it maintains the segment leadership. Also, Exter is doing very well.” Hyundai Creta competes with other popular models like Kia Seltos and Maruti Suzuki’s Grand Vitara in the Indian passenger vehicle market.
The company is also on track to meeting its export target of 1.6 lakh units for the year, with Garg mentioning that the last “two to three” months have been positive. Hyundai has increased its capacity about 4,000 units per month since July, allowing them to manage domestic and export demands effectively. Garg also acknowledged the contribution of the Latin American markets, which have been performing well and boosting the company’s export numbers.
Despite concerns over global geopolitical developments, particularly in Israel and the Middle East, Hyundai is cautiously optimistic as they have seen a reasonably good order inflow. The company’s supply flexibility has been instrumental in increasing their exports in the last three months. Garg emphasized, “We are keeping our fingers crossed, but as of now, the order inflow has been reasonably okay.”
With Hyundai Motor India Ltd’s focus on SUVs, their strong sales performance, and ability to meet export targets, they are poised to continue their success in the Indian market.