Hyundai India Exports Up 44%

Hyundai Motor India Limited (HMIL) reported domestic wholesale sales of 51,547 units in September 2025, marking a recovery from the subdued performance seen in recent months. While the figure represents only a marginal 0.9% increase over the 51,101 units sold in September 2024, it signals a 17% improvement from August's 44,001 units, suggesting that festive season demand is beginning to materialize.

The September uptick comes as a relief for the South Korean automaker, which has struggled with domestic volumes through much of the current fiscal year. For the April-September 2025 period, Hyundai's cumulative domestic sales stood at approximately 3,32,386 units (based on April-August data of 2,80,839 units plus September's 51,547 units), indicating continued pressure in the home market.

A month-by-month analysis of Hyundai's recent domestic performance reveals a challenging environment. After posting 44,001 units in August 2025, which itself was barely higher than July's 43,973 units (an increase of just 28 vehicles), the September figure of 51,547 units represents the strongest monthly showing since the fiscal year began in April. The company, meanwhile, was keen to highlight that September sales were up sharply from August's 44,001 units.

It also pointed to a strong performance in exports, which are at a 33-month high. Exports surged 44% YoY to 18,800 units, marking the highest monthly exports since Dec 2022. Cumulatively, Apr–Sep exports rose 17% YoY to 99,540 units, reinforcing India as Hyundai’s global export and manufacturing hub.

This export strength has helped Hyundai maintain overall volumes, with total sales (domestic plus exports) reaching 70,347 units in September, up 10% year-on-year. However, for a company that has historically derived the bulk of its volumes from the domestic market, the export surge serves more as a cushion than a solution to the core challenge of reviving home market sales.

GST Boost

The company now expects strong tailwinds from the recent cut in GST. "We extend our sincere gratitude to the Hon'ble Prime Minister Shri. Narendra Modi Ji for the transformative GST 2.0 reforms, which have given wings to the aspirations of millions of people around the country," Garg said.

According to an official, HMIL is witnessing a "synergetic alignment of domestic + export growth" which could lead to “double-engine growth” in coming months.

The GST reduction has made vehicles more affordable just as the crucial festive season approaches. In India's automotive market, September through November typically accounts for a significant portion of annual sales as consumers make purchases around Diwali and other major festivals. Dealers stock up during this period, driving wholesale numbers higher. 

The question now is whether this September recovery represents a sustained turnaround or merely a temporary festive bump.

Soft Demand

As in case of rivals such as Tata, Hyundai has been hit by slow demand in recent months. The year-on-year growth of less than 1% in September—despite the GST benefits and festive demand—suggests underlying challenges persist. Moreover, retail numbers sourced from Vahan database seem to indicate continued weakness for Hyundai. 

This is in addition to some slippage in its market share over the last several quarters. According to industry data, the company's share of the Indian passenger vehicle market fell to 13.8% in FY2025, down 80 basis points from 14.6% in FY2024.  

The competitive landscape has intensified significantly, with Hyundai facing pressure from multiple directions. Mahindra & Mahindra has emerged as a formidable challenger, growing its market share from 10.9% in FY2024 to 12.7% in FY2025. Tata Motors, holding a 13.1% share, remains another close competitor.

In March 2025, Hyundai managed to reclaim the No. 2 position in the Indian market from Tata Motors, but by a razor-thin margin of just 204 vehicles. At one time, the company used to enjoy a comfortable cushion in the runner-up spot it has traditionally occupied behind market leader Maruti Suzuki.

Meanwhile, Maruti Suzuki continues to dominate with a 40.6% market share, though even the market leader has seen its share decline from 41.8% in FY2024.

Like in case of Mahindra and Tata, September's 17% jump from August's wholesale levels provides some reassurance, but whether this represents a genuine inflection point or simply normal festive season stocking by dealers remains to be seen. October and November numbers will be critical in determining if Hyundai has truly turned the corner.

Product Mix Shift Underway

While overall domestic volumes have been under pressure, Hyundai has been shifting its product mix significantly toward SUVs. In September, SUVs accounted for 72.4% of domestic sales—37,313 units out of 51,547 total units. This represents the highest SUV penetration in the company's history in India.

The Creta mid-size SUV recorded its best-ever monthly sales of 18,861 units, while the Venue compact SUV posted 11,484 units—its highest monthly tally in 20 months. 

The flip side is weakness in sedans and hatchbacks. Hyundai's market share in the sedan segment have fallen, offsetting SUV gains, resulting in the flat overall domestic performance.

The September recovery suggests that consumer sentiment is improving, and the GST reforms should provide additional stimulus. However, Hyundai will need to sustain month-on-month growth through the festive season to make up for the weak April-August performance and avoid a second consecutive year of domestic volume decline.