Hyundai Admits Slower Launches Hurt Sales as Market Share Slips; 26 New Models Coming by 2030
- Team Autopunditz
- 18 minutes ago
- 3 min read
In a rare admission, Hyundai Motor India (HMIL) has acknowledged that a slower pace of product launches, facelifts and model upgrades compared to rivals has adversely affected its domestic performance. The company has conceded that the lack of frequent product refreshes allowed competitors such as Mahindra and Tata Motors to gain significant ground in India's rapidly evolving passenger vehicle market.
Despite remaining one of India's largest automakers, Hyundai's domestic market share has steadily declined over the past few years, prompting the Korean manufacturer to unveil an aggressive long-term product and investment strategy aimed at reclaiming lost ground.
Hyundai Slips to Fourth Position After 16 Years
According to Hyundai's latest annual report, domestic sales in FY26 stood at 5,84,906 units, down around 2.3% year-on-year, even as the overall Indian passenger vehicle market continued to expand. The company also lost its long-held No.2 position, slipping to fourth place behind Maruti Suzuki, Mahindra, and Tata Motors.
Data from the Federation of Automobile Dealers Associations (FADA) shows Hyundai's passenger vehicle market share has declined from 17.36% in FY21 to just 12.29% in FY26, highlighting the intensity of competition in the SUV-dominated Indian market.
Mahindra and Tata Capitalised on Fresh Product Momentum
While Hyundai struggled with a relatively slower product cycle, both Mahindra and Tata Motors expanded their SUV portfolios aggressively.
During FY26:
Mahindra recorded domestic passenger vehicle sales of around 6.60 lakh units, registering approximately 20% growth.
Tata Motors Passenger Vehicles crossed 6.42 lakh units, growing roughly 15%.
Hyundai, meanwhile, witnessed declining domestic volumes despite maintaining healthy export performance.
Industry analysts believe Hyundai's dependence on the Creta, which contributes roughly one-third of its domestic sales, also exposed the company to greater risk as rivals diversified their SUV line-ups with multiple successful products.
Exports Continue to Provide Stability
Although domestic sales weakened, Hyundai's export business remained a bright spot.
FY26 exports increased by approximately 16.4% to 1,90,125 units, helping the company post revenue growth despite softer domestic demand. Hyundai continues to be one of India's largest passenger vehicle exporters and sees exports as a key pillar of its long-term strategy.
Hyundai's Biggest Product Offensive Yet
To reverse the declining trend, Hyundai has announced one of the largest product expansion plans in its India journey.
The company intends to launch:
26 new products by 2030
Multiple all-new models
Several facelifts and upgrades
New electric vehicles
Expanded hybrid offerings (SAHI)
The roadmap includes:
A new locally developed electric SUV expected during FY27.
Another all-new ICE SUV.
Multiple product refreshes aimed at maintaining competitiveness across segments.
Eight hybrid models and five EVs by 2030, reinforcing Hyundai's multi-powertrain strategy.
Massive Investment Planned
Supporting this ambitious product strategy is a substantial investment programme.
Hyundai plans to invest approximately ₹45,000 crore by FY30, with a majority of the capital directed towards:
Product development
Research & Development
Electrification
Manufacturing expansion
Localisation initiatives
The company is also ramping up production at its Pune (formerly Talegaon) manufacturing facility, with initial annual capacity targeted at 1.7 lakh units, eventually increasing to 2.5 lakh units. Combined with its Chennai operations, Hyundai aims to significantly strengthen its manufacturing footprint in India.
Can Hyundai Bounce Back?
Hyundai remains one of India's strongest automotive brands, but the competitive landscape has changed dramatically.
Domestic manufacturers have expanded rapidly through:
Faster product refresh cycles
New SUV launches
Stronger diesel and lifestyle vehicle portfolios
Aggressive pricing
Increased localisation
Hyundai's acknowledgement that slower launches hurt its competitiveness is notable because automakers rarely publicly admit product-cycle shortcomings.
Whether the planned wave of 26 new models, expanded hybrid lineup, next-generation EVs and increased production capacity can help Hyundai regain its lost market share will likely become clearer over the next two to three years.
With India becoming one of Hyundai's most important global markets, execution of this ambitious roadmap will be critical in determining whether the brand can reclaim its position among the country's top passenger vehicle manufacturers.
Auto Punditz Take
Hyundai's challenge isn't about brand perception—it's about product cadence. Models like the Creta, Venue and Exter continue to enjoy strong customer acceptance, but the Indian market now rewards manufacturers that refresh their portfolios quickly and consistently. Mahindra and Tata have demonstrated this with a steady stream of launches across multiple segments.
If Hyundai successfully delivers its promised pipeline of 26 products, expands its hybrid portfolio and accelerates EV localisation, the company has a realistic opportunity to regain momentum. However, delays in execution could further widen the gap as competition intensifies in both ICE and electric vehicle segments.