Behi​​​​​​​nd Hyundai's India plans to reverse market share decline

South Korean chaebol Hyundai, which entered the Indian market with ‘tall boy’ Santro in 1996, completes 30 years in the country. For decades, Hyundai was second only to Maruti Suzuki, the first major mover and shaker in the Indian car market. However, over the last five years, it has lost its grip on India with its market share falling from as high as 17% in the financial year 2020-21 to 12% in FY26—leaving it behind Mahindra & Mahindra (M&M) and Tata Motors Passenger Vehicles at the fourth place.

It now plans to invest Rs 45,000 crore in India, between FY26 and FY30 to expand manufacturing, electrification and future mobility solutions in India.

In October 2025, Hyundai announced a robust launch pipeline of 26 new products and variants by FY30.

While the company may have fallen behind in domestic sales, Hyundai is still the second-largest car exporter from India. It has shipped over 3.9 million vehicles to more than 150 countries since inception. Top global markets for HMIL’s made-in-India products include Saudi Arabia, South Africa, Mexico, Chile, and Peru with the Hyundai VERNA, Grand i10 NIOS and AURA accounting for the majority share.

“We are proud to have served over 13.5 million customers since inception - including 9.6 million+ in India and 3.9 million+ exported to 150 countries across the globe - a testament to India’s role at the heart of Hyundai’s global success,” said Tarun Garg, MD & CEO, Hyundai Motor India Ltd.

Since inception, Hyundai has invested Rs 40,700 crore in scaling operations in India. Hyundai Motor India began its India journey with the groundbreaking of a modern manufacturing facility in Sriperumbudur near Chennai, Tamil Nadu, on May 6, 1996. Commissioned in 1998, the plant marked the company’s first fully integrated car manufacturing unit outside Korea and has since developed into a benchmark for smart factory operations and sustainable, green manufacturing practices.

To cater to rising demand and strengthen India’s position as a global hub, Hyundai Motor India operationalised its Talegaon manufacturing facility in Pune in 2025. Together with the Chennai plant, the two facilities offer a combined annual production capacity of 9.94 lakh units, set to expand to 10.74 lakh units by 2028—further cementing India’s central role in Hyundai’s global manufacturing network. Hyundai claims its deep localisation strategy has strengthened India’s supply chain achieving 82% average localisation.