Hyundai reclaims 2nd spot in India’s car market in January

South Korea’s Hyundai Motor India emerged as India’s second-largest carmaker by volume in January 2026 after five months, according to VAHAN data.

Hyundai clocked retail sales of 65,564 cars (excluding Telangana) in January, up 10% year-on-year, the VAHAN data show. In comparison, Mahindra & Mahindra (M&M) sold 63,087 units last month, notching 22% year-over-year jump.

“January saw a very good momentum. We were pleasantly surprised. VAHAN was very good at almost 65,000-plus. We have to see how things progress going forward,” Tarun Garg, the first Indian managing director and CEO of Hyundai Motor India, said in a media conference call after the company announced its third-quarter earnings.

In January, retail sales of India’s biggest carmaker, Maruti Suzuki India Ltd, rose 2.3% year-on-year to 2,15,934 vehicles—more than the combined volumes of Hyundai, M&M and Tata Motors.

This robust January sales come as the Indian auto industry benefitted from supportive policy measures announced by the government. The GST reforms and interest rate cuts significantly improved customers’ buying sentiment, said Garg.

Hyundai also recorded its highest-ever monthly domestic wholesales of 59,107 units in January, registering a 9.5% year-on-year growth.

While every segment seems to be growing, data suggests that growth is higher in the compact sport utility vehicle (SUV) space compared to hatchbacks, Garg said.

“After the GST rate cut, it is very clear that the trend is towards SUVs. From April 2025 to August 2025, the SUV contribution stood at 53.8%. From September 2025 to January 2026, it is 56.5%,” Garg explained, adding that this growth is aided by more models being launched in the SUV category.

Hyundai’s SUV contribution stood at 70% in the third quarter of FY26 while hatchbacks accounted for 17% share and sedans 13%.

The taxi market will help Hyundai get more volumes going ahead, said Garg. “The taxi market is over 300,000 vehicles annually. We believe there is a great opportunity there,” he added.

On the comeback of urban demand, Garg said, “Until about six months back, it was only rural which was driving the growth for the industry. However, now, while rural is driving, urban has also started chipping in.”