Hyundai India Plans to Beat Rivals in Second Half of FY27, Says CEO Tarun Garg

Hyundai Motor India expects to outperform the industry in the second half of financial year 2026-27 (FY27), managing director and chief executive officer Tarun Garg said ahead of the launch of its mid-size sport utility vehicle (SUV), Bayon. Garg expects the company’s domestic car sales to grow by 8% to 10% in FY27.

Hyundai Motor India sold 294,262 units in the first half of FY27, a 10% increase year-on-year, on the back of a cut in the Goods and Services Tax.

“We plan to outpace the industry in H2. As I mentioned, we expect the industry's growth to be around 5%, and we aim to sustain momentum at around 8%, so we plan to really beat the industry going forward,” Garg told reporters.

The company expects the Bayon, which was launched on Monday at a starting price of ₹9,99,900, to strengthen its position in the mid-size SUV segment. Hyundai is targeting sales of 250,000 units in the segment in calendar year 2027, with Garg describing the figure as a baseline rather than a ceiling.

In FY26, Hyundai lost its long-held second position in the Indian passenger vehicle market to Mahindra & Mahindra and Tata Motors PV, as its sales declined from 598,666 units in FY25 to 584,906 units in FY26. In the same period, Mahindra recorded more than 660,000 passenger vehicle sales, while Tata Motors sold more than 640,000 vehicles.

The Bayon is one of seven new car models Hyundai reportedly plans to launch by 2030. The new model will compete with the Tata Sierra, Maruti Suzuki Victoris, Grand Vitara and Renault Duster in the crowded mid-size SUV segment.

Hyundai expects the new model to complement the Creta and expand its presence in the segment, even if it eats into the latter’s market share, as buyers increasingly shift from hatchbacks and sedans to SUVs.

“There is ample opportunity, and we look at this through a comprehensive strategy. We consider how a product is positioned in the customer's mind, the engine options and features it offers, and how we can minimise cannibalisation. Ultimately, as long as we can offer customers more choices and drive Hyundai's overall growth, some overlap is acceptable,” Garg said. He added that the company had also tried to optimise powertrains and variants to avoid confusion.

The launch of the Bayon, along with another upcoming model, is expected to help improve capacity utilisation at Hyundai’s Chennai plant, which declined after Venue production was shifted to Pune.

Hyundai has a production capacity of 994,000 vehicles, comprising 824,000 units at Chennai and 170,000 at Pune. Another 80,000 units of capacity are planned for 2028 and 70,000 units for 2030.

Garg also said Hyundai would continue selling the Verna sedan despite a shrinking domestic market, citing demand from customers who prefer sedans and the model’s export potential, particularly in the Middle East.

Hyundai has also outlined plans for electric vehicles (EVs), hybrids and compressed natural gas (CNG) models to account for around 50% of its portfolio by 2030, with each category contributing roughly equally. Garg said the company expected its EV sales to catch up with the industry as new models are introduced.