Hyundai expects SUVs to account for three out of every four cars it sells in India within the next 12 to 18 months. Its longer-term target is even higher: by 2030, SUVs could make up eight out of every ten Hyundai cars sold here. The prediction concerns Hyundai’s own sales, not the entire passenger car market.
Speaking during the company’s earnings call for the September 2026 quarter, managing director and CEO Tarun Garg said he would not be surprised if the SUV share reached 75% over the next year to year and a half. The wider 80% goal was outlined earlier by Hyundai Motor Company president and CEO José Muñoz at the August 2026 investor day.
The September quarter gives a clear picture of the company’s current sales mix. Hyundai sold 1,11,756 SUVs domestically in Q2 FY27, an increase of 12.6% over the 99,220 units sold in the same quarter last year. SUVs accounted for 67% of its domestic sales, compared with 71% a year earlier.
That fall in percentage share is significant
That fall in percentage share is significant. Hyundai’s SUV volumes actually increased, but its hatchbacks and sedans grew faster during the quarter. In all, domestic sales reached 1,65,772 vehicles, up 18.8% year-on-year. That makes the forecast of a 75% SUV share a target for further change in the mix, not a description of current sales.
The numbers also show that Hyundai is not dependent on one type of car. Hatchback sales grew 41.3% to 31,956 units, raising their contribution from 16% to 19%. Sedan sales increased 24.8% to 22,060 units, with their share remaining around 13%.
The recovery in smaller cars follows the GST changes that made several affordable models more accessible. Buyers who had been priced out of the market now have another reason to consider a hatchback or compact sedan. Garg acknowledged that improvement during the earnings call but said he expected SUVs to grow faster over the medium term.
Hyundai’s forecast is not based only on customers
Hyundai’s forecast is not based only on customers moving from small cars to larger, more expensive vehicles. The company already offers SUVs across several price points, from the Exter and Venue to the Creta and Alcazar. The Bayon, launched on October 26 with a starting ex-showroom price of Rs 9.99 lakh, adds another option to the range.
At the lower end of the market, an SUV-style vehicle can be bought for money that once limited customers largely to conventional hatchbacks. The appeal includes a taller seating position, easier entry for some occupants, greater ground clearance and the appearance of a larger vehicle.
Hyundai also has an electric SUV planned for the final quarter of FY27. The company confirmed in its latest results announcement that a dedicated mass-market EV is scheduled for that period. New SUVs and alternative powertrains will help Hyundai give customers more reasons to choose the body style without requiring everyone to buy a similarly priced petrol SUV.
The preference is not limited to major cities
The preference is not limited to major cities. Rural areas accounted for a record 26.6% of Hyundai’s domestic sales in the September quarter, and the company says SUVs made up roughly 68–70% of its rural sales. That is close to the urban mix. Hyundai is also directing a substantial part of its new dealership expansion towards smaller towns and rural locations.
One reason is the growing availability of smaller SUVs. Their dimensions and running costs can be closer to those of hatchbacks than the traditional large SUVs that once dominated the category. Customers in these markets are also increasingly looking for automatic gearboxes, CNG choices and modern safety and convenience features, rather than choosing solely on vehicle size.
No. The company’s own quarterly performance shows the opposite in the short term. Hyundai’s hatchbacks recorded much faster year-on-year growth than its SUVs. The Grand i10 Nios and i20 remain part of the range, while the Aura continues to serve buyers looking for a compact sedan.
The wider market also needs to be viewed
The wider market also needs to be viewed carefully. Industry data show utility vehicles accounted for approximately 68% of passenger vehicle wholesales in Q2 FY27, but that category is broader than Hyundai’s SUV mix and includes other types of utility vehicles. It would be incorrect to take Hyundai’s 80% target and present it as an industry-wide forecast.
Hyundai has also been linked to new generations of the Grand i10 Nios and Aura later in the decade. So although its future launches will lean heavily towards SUVs, the company still has reasons to retain affordable hatchbacks and sedans. Many buyers continue to value easier parking, lower purchase costs and the typically lighter weight of a smaller car.
