Hyundai India to accelerate premiumization as SUV sales surge, hatchbacks lag

Hyundai India, the nation’s second-largest carmaker, reported a fall in the sales of SUVs during the second quarter, but the share of SUVs in overall sales went up as non-SUV sales fell faster.

Sales of SUVs fell to 102,636 units during the September quarter from 103,178 units in the year-ago quarter. However, their share in the overall sales rose to 69% from 65% because of a steeper decline in the non-SUV segment.

The company said its high-tech SUVs continued to capture a significant portion of the market.

"Our SUV portfolio during the quarter accounted for a substantial 68.6% as against the industry penetration of 54.9%," the company management stated during the call. "As part of our premiumization strategy, we continue to innovate and bring forth high-tech features to excite and engage our customers," the management added. 

In September, Hyundai introduced its upgraded Alcazar six seater SUVs. The Creta, Venue and Exter are some of the other key SUVs from Hyundai performing well in the market. 

While SUV sales volumes increased, Hyundai saw the share of hatchbacks declining to 20% to 29,668  units  during Q2FY25 as against 22% at 34,244  units in Q2FY24. Similarly, the percentage share of the sedan declined marginally to 12% at 17,335 units during Q2FY25 when compared with 13% share at 21,350 units in Q2FY24. 

The SUV segment has been one of the fastest growing category in the Indian passenger vehicle market in recent years. Growing consumer preference for higher ride height, spacious interiors, and premium features associated with SUVs are some factors driving demand. Apart from Hyundai and Maruti Suzuki, newer entrants like Kia and MG have also made strong inroads with models like Seltos and Hector. Automakers are focusing on expanding their SUV lineups to capitalize on the segment's popularity.