Hyundai Motor India (HMIL) expects its domestic sales to grow 8-10% year-on-year in the second half of 2026-27 (FY27), significantly faster than the 5-6% YoY growth that managing director and CEO Tarun Garg expects for the overall passenger vehicle industry. According to reports from Rediff Moneynews, Garg stated that the company was preparing to launch two new models in high-demand segments to achieve this outperformance. The automaker has already recorded around 13% growth in domestic sales during April-August, and expects to sustain this momentum in the second half. As reported by Rediff Moneynews, Garg noted that "For us, we are expecting 8-10% growth. Overall for the entire fiscal, the industry could grow at around 8-10% and Hyundai is also looking for a similar growth for the full year."
Hyundai expects electric vehicles to account for 7-8% of its sales next financial year, with the company planning to enter the sub-four-metre EV segment with a dedicated born-electric model. According to Business Standard, Garg confirmed that "In the festive season, we are going to launch one more mid (size) SUV and then we will have one more EV, which will be a dedicated EV in the sub-four metre segment. These are the two segments which are growing the fastest." The company's EV strategy extends beyond the current Creta Electric, which has seen monthly sales increase to around 1,000 units from 400-500 units earlier, with demand described as consistent rather than temporary. Hyundai also expects EVs, hybrids and compressed natural gas (CNG) vehicles to together account for around 50% of its sales by 2030, with the three technologies contributing broadly equally.
Garg expects the PV industry to post 18-20% growth in the first half of FY27, mainly because the comparable period last year had a very low base. As reported by Rediff Moneynews, he cautioned that the H1 growth number would be misleading as sales were weak in the April-September period last year. The government announced sizeable GST rate cuts on September 22, 2025, which accelerated PV demand. Since there was a boom in sales in the second half of the last financial year, the high base will ensure that volume sales growth in H2 of the current financial year would remain in the 5-6% range. However, according to SIAM data, PV wholesales in the domestic market have grown 27.1% to 16,69,010 units in the April-July period of FY27, compared to 13,13,135 units in the same period a year ago.
Hyundai is significantly increasing its production capacity at both Pune and Chennai plants to support its growth ambitions. According to Rediff Moneynews, Garg announced that "The Pune plant will have a total capacity of 2.5 lakh units annually by 2028 and 3 lakh units by 2030, up from the current 1.7 lakh units per annum. Coupled with the Chennai plant capacity of 8.24 lakh units per annum, HMIL will have a total capacity of 11.24 lakh units per year." He emphasized that "We can take care of a very high double-digit growth, which we are expecting both from domestic and export markets, in the next five years with this kind of a capacity." The company is also bringing forward the third shift at its Pune plant by two years, starting from October 1 this year, while Chennai's capacity utilisation is expected to return to around 90%.
Rural demand continues to be a strength for Hyundai, with rural markets accounting for 26% of sales in the last quarter, which Garg described as the "highest ever for Hyundai." According to Rediff Moneynews, the company is confident of maintaining this momentum, with products especially SUVs gaining significant traction in rural markets. As reported by Rediff Moneynews, when asked about regaining the No. 2 position in the domestic PV market, Garg said "Absolutely...we are very passionate (about the number two spot)." Citing VAHAN registration for August, Garg confirmed that "In the ICE (internal combustion engine) segment we are number two." The company is expanding its rural network, with six out of every 10 new outlets being added in rural areas. Hyundai sold 584,906 vehicles in the domestic market in 2025-26, with domestic sales growing 12.6% year-on-year during April-August this financial year, and 54,396 vehicles domestically in August, up 23.6% year-on-year and its highest-ever sales for the month.
