Hyundai India Overlooks Rare Earth Magnet Predicament, Exports Thrive Amidst Domestic Market Obstacles
Hyundai's Mixed Sales Performance in India and Future Plans
Hyundai Motor Company, the South Korean automaker, is navigating a mixed sales performance in India, with a decline in domestic sales and a steady or growing export market.
In the first quarter of the financial year 2025-26 (April–June 2025), Hyundai recorded total sales of 180,399 units, with 132,259 units in domestic sales and 48,140 units in exports. However, in June 2025, domestic sales fell 12.1% year-on-year to 44,024 units, while exports rose 13–15% to around 16,900 units. For July 2025, domestic sales declined over 10% year-on-year to 43,973 units, while exports slightly increased to 16,100 units.
The decline in domestic sales can be attributed to a drop in Hyundai's market share to about 14%, its lowest since FY2013. However, the company's SUV sales continue to dominate the domestic market, accounting for nearly 68% of domestic dispatches in Q1 FY2026. The Hyundai Creta, with multiple engine options and a starting price of ₹ 11.11 Lakhs, remains a popular choice, leading monthly sales at 15,000–17,000 units.
Despite the downturn, Hyundai remains optimistic about a recovery driven by the upcoming festive season and new product launches. The company is set to launch new products, including the India-built Creta EV priced at ₹17.99 lakh, smart variants of the Exter, and a hybrid SUV codenamed Ni1i from its Talegaon plant. Upcoming launches over the next 12-18 months include a next-generation facelift for the Venue and Creta, and plans for a total of 26 model launches by FY2030, including six electric vehicles.
In addition, Hyundai is banking on the upcoming festive season and easing interest rates for the revival of domestic demand. The company's Managing Director, Unsoo Kim, expects exports to make up 27% of first-quarter sales and a 30% share for the full year.
In the CNG segment, Hyundai recorded an enhanced contribution of 15.6% in its total sales, propelled by the introduction of dual-cylinder technology and new variants. The Hyundai Exter, with a 1197 cc engine and a starting price of ₹ 6.21 Lakhs, is an existing car in Hyundai's lineup.
The upcoming Hyundai Stargazer and Mahindra XEV 9e are also worth mentioning. The Stargazer, with multiple engine options and an expected price of ₹ 10 Lakhs, is another car in Hyundai's portfolio. The Mahindra XEV 9e, with a 79 kWh battery, offering a range of 656 km, and a price of ₹ 21.90 Lakhs, is an upcoming electric vehicle from Mahindra.
Hyundai's manufacturing head, Gopalakrishnan C S, stated that Hyundai remains unaffected by the ban, having adequate inventory. Moreover, Gopalakrishnan mentioned that Hyundai has sufficient rare earth inventory for the near term.
For more information about upcoming cars in India, readers are advised to refer to a separate article available on this topic.
- Hyundai's optimism for a recovery in sales is not limited to the domestic market, as the company also plans to boost its business by introducing new technology-oriented products such as electric vehicles and hybrid SUVs.
- As part of their diverse portfolio, Hyundai continues to explore opportunities in lifestyle segments, with the introduction of vehicles like the Hyundai Stargazer, which caters to both lifestyle and technology enthusiasts.
