Hyundai Sees Sharp Decline in Auto Shipments in April

Hyundai Motor India Limited (HMIL) reported a sharp fall in its India dealer shipments in April, suggesting continued downfall in demand for its models. Shipments for the domestic market were down 14.4% sequentially and 8.9% YoY, posting 44,374 units in April 2025.

A month earlier, it had recaptured its No.2 position in shipments (wholesales) after reporting strong numbers for March, narrowly surpassing Tata Motors (51,616 units) and Mahindra & Mahindra (48,048 units).

However, retail sales for that month (March) had painted a weaker picture, with Hyundai retailing only 42,511 units, trailing Tata Motors (48,462 units), and Mahindra (46,297 units), according to the Federation of Automobile Dealers Associations (FADA).

This gap seemed to suggest that Hyundai may have shipped more vehicles to dealers in March anticipating robust retail demand in April.

However, the new number showing a substantial decline in April wholesales points to continued weak demand from the dealer end.

Including exports, Hyundai’s total monthly sales was 60,774 units, including 16,400 units shipped overseas. The company’s exports rose 21.5% year-on-year growth in April 2025 and a 16.2% increase in export volumes from January to April 2025 compared to the same period in 2024, reinforcing its ‘Make in India, Made for the World’ commitment.

Tarun Garg, Whole-time Director and Chief Operating Officer, HMIL, highlighted plans to commence operations at the new Talegaon plant in Q4 2025 to enhance production capacity.

The March wholesale figures, where Hyundai’s 51,820 units led Tata Motors by just 204 units, underscored the intense competition for the second spot behind market leader Maruti Suzuki. Mahindra, with 48,048 units, also showed strength, driven by an 18% year-on-year growth in domestic SUV sales, fueled by models like the Scorpio-N and XUV700. However, Hyundai’s retail struggles in March, with a 9,309-unit gap between wholesale and retail sales, indicated potential inventory buildup at dealerships, a trend that may have persisted into April given the sharp wholesale decline.

The April wholesale drop to 44,374 units, a reduction of 7,446 units from March, suggests dealers may be cautious amid softer-than-expected retail demand. This follows a similar trend in February 2025, when Hyundai’s wholesale shipments of 47,727 units significantly outpaced retail sales of 38,156 units, further highlighting inventory challenges.

Backed by capital from its record-breaking 2024 IPO, Hyundai is poised to address these challenges through investments in electric vehicle development and manufacturing expansion. As it approaches its 30th anniversary in India, leveraging its strong brand equity and popular models like the Creta and Venue, while tackling inventory management and boosting retail appeal, will be critical to regaining momentum in India’s fiercely competitive automotive market.