Share of SUVs in October at 57% of total industry volume
Sales data not supporting small car narrative so far, says Garg
Hyundai has launched new model of Venue, its compact SUV
The government’s latest GST cuts haven’t yet sparked the anticipated revival in small car demand. Instead, early trends suggest buyers are using the tax savings to upgrade to higher models, keeping their overall budgets unchanged, said Tarun Garg, Whole-time Director & Chief Operating Officer, Hyundai Motor India on Monday.
“I think the story is very clear… it is still SUVs that are the toast of the nation despite the GST reforms,” Garg said. “And actually, it is the mid-to-large SUV segment that has grown the most.”
Under the new GST tax slabs, car less than 4 metre in length and below 1200 CC attract a tax of 18%, down from 29-31% earlier. Companies like Maruti Suzuki have expressed hope that the new tax regime will help expand the entry level car market in which it is the biggest player.
“(The GST relief) over a long term will certainly accelerate the growth which was taking place at a very, very low rate. We should now see a much higher growth,” Maruti chairman RC Bhargava had said last week during a press meet when asked about the GST impact. He declined to forecast the growth rate of the segment, advising to wait for a few months before putting a number to the growth.
However, Maruti’s October sales figures show that the sale of its entry level models like Alto and S-Presso slightly fell from over 10,600 units during the corresponding month last year to about 9,000, a 15% decline year-on-year.
The compact segment for the company, which includes models like Baleno, Dzire, Swift and WagonR expanded by 15% from close to 66,000 units to over 76,000 units. The utility vehicle segment of Maruti grew 9.8% during the same month.
Citing industry data, Garg, the soon-to-be CEO of Hyundai India, said that the market share of hatchbacks has actually declined despite the expectations of revival after the GST reforms. From January to August this year, hatchbacks accounted for 22.4% of the industry’s wholesale numbers, which fell to 20.4% in September plus October. In October alone, the share dipped further to 20%.
In contrast, the share of SUVs stood at 54%, 56.9%, and 57% during the same corresponding periods.
Over the past seven years, SUV demand has grown consistently, except in 2020. From about 7.55 lakh units in 2019, SUV sales rose to over 23.21 lakh units last year. The compact SUV segment, the largest and most competitive sub-segment, grew from 3.61 lakh units to 8.84 lakh units during the same period. Its share in the overall SUV market rose from 38% in 2024 to 41% during January-September 2025.
According to Hyundai’s internal estimates, overall SUV sales are expected to surpass 23.54 lakh units this year and reach over 24.48 lakh units in 2026. The compact SUV segment is projected to grow to 9.58 lakh units and 9.85 lakh units, respectively, during the same years.
Hyundai launches new Venue
Hyundai Motor India on Tuesday announced the prices for its updated compact SUV, the Venue. The base variant starts at an introductory price of ₹7.89 lakh (ex-showroom).
Built on Hyundai’s advanced global K1 platform, the new Venue retains the same engine options as the outgoing model but features a longer wheelbase, a more global design, and significantly upgraded interiors. The company said it has invested about ₹1,500 crore in developing the new Venue.
Within the SUV market, compact SUVs account for the highest share at 41%. The Venue has been Hyundai’s best-selling model after the Creta since its launch in 2019, becoming a key growth driver in the compact SUV space. The company said it has consistently sold over 100,000 units annually post the COVID era.
Hyundai has seen its market share eroding from 16.3% in FY19 to 13.8% in FY25. The long-time number two player of the PV industry, Hyundai has been facing tough competition from Mahindra and Tata Motors.
During the same period, Mahindra and Tata have increased their share from 7.1% and 6.3% to 12.8% each. Hyundai's sales have been skewed in just two of its 10 models namely Creta and Venue, contributing close to 60% to its total sales numbers.
"Numbers are very important. Rankings are very important. At the same time, we want to grow profitably. We have given a very strong plan to come back with the launch of new models as well as other things," Garg said.To strengthen its number two position in the PV market, the South Korean company plans to launch 26 new models in India by FY30.
At the company's recent Investor Day, President & CEO of Hyundai Motor Company José Muñoz had announced that by 2030, the company aimed for a 15% market share in India, supported by a 1.1 million-unit production capacity.
"This begins with the launch of the new-gen Hyundai Venue — first of 26 upcoming models, including 7 all-new nameplates," said Managing Director Unsoo Kim during the launch event.
He said that India is poised to become a strategic global manufacturing hub for Hyundai Motor Company, with exports projected to account for 30% of the Indian arm's total production by 2030.
"SUVs and MPVs will make up 82% of our sales, with over half featuring eco-friendly powertrains," he said.
