Hyundai’s SUV Surge in Q2 FY26
In a remarkable sales achievement, Hyundai announced that SUVs comprised 71 percent of its total sales in the second quarter of FY26. This impressive figure underscores the rising demand for Hyundai’s SUV lineup, particularly in rural regions.
Also read: Toyota’s Bold Move: 15 New SUVs and Pickups Set to Launch by 2030
Growing Diesel Vehicle Demand
Hyundai’s sales success is also marked by a notable increase in demand for diesel vehicles. This trend is especially pronounced in rural markets, where customers favor diesel options. In Q2 FY26, Hyundai sold 99,220 SUVs, reflecting a staggering year-on-year growth of 71 percent.
Sales Insights
Diesel vehicles accounted for 23 percent of Hyundai’s overall sales during this quarter. Rural markets were particularly significant, contributing 24 percent to Hyundai’s total sales, with SUVs representing 72 percent of those figures. Tarun Garg, Hyundai’s Chief Operating Officer, highlighted the critical role of rural markets in this sales boom.
Understanding Hyundai’s Buyer Demographics
Hyundai’s customer demographic skews younger, with over 60 percent of buyers under the age of 40. Despite a slight overall decline of 6.8 percent in retail sales, the brand remains optimistic, thanks to the strong demand for its SUVs.
GST Changes and Their Impact
Garg noted that recent changes in GST rates caused a temporary delay in purchases among budget-conscious rural buyers. This shift affected sales figures, particularly for the Hyundai Venue, which is poised for a revival with the rollout of its new model on November 4.
Hyundai’s Export Success
On the export front, Hyundai demonstrated impressive growth, exporting 51,400 units in the last quarter. Key markets include the Middle East and Mexico, with the Aura and Venue models significantly contributing to these numbers. The Grand i10 Nios emerged as the most exported model to South Africa.
Financial Performance Overview
Hyundai’s financial health remains strong, with an EBITDA of Rs 24,289 million recorded in Q2 FY26. The company strategically avoided engaging in a discount war during the GST transition, which helped preserve profitability.
Market Position and Competition Analysis
While Hyundai has traditionally been India’s second-largest automotive brand, it faces stiff competition from domestic rivals like Tata Motors and Mahindra & Mahindra, who have gained traction through their SUV offerings.
Conclusion
As Hyundai adapts to evolving market demands and consumer preferences, its robust SUV lineup and focus on rural markets could be pivotal in reclaiming its competitive edge in the Indian automotive sector.
Disclaimer: This article is a rewritten summary from reliable sources. Please do your own research before making financial or purchase decisions.
Read More: 6 Upcoming MPVs to Watch for in India: Maruti to Hyundai
Related: Toyota’s Bold Move: 15 New SUVs and Pickups Set to Launch by 2030
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FAQs
What percentage of Hyundai’s sales in Q2 FY26 were SUVs?
SUVs accounted for 71 percent of Hyundai’s total sales.
What impact did the GST changes have on Hyundai’s sales?
GST changes led to a postponement of purchases, particularly in rural markets.
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