Hyundai bets big on sub-₹10 lakh SUV growth after GST cut

Hyundai Motor India is betting big on the sub-₹10 lakh sports utility vehicle (SUV) segment, which the company believes will see strong growth after the goods and services tax (GST) cut. “SUVs under 10 lakh will probably see very big growth. If you give customers the right features — connectivity, ADAS, sunroof, automatics — this is a huge opportunity,” said Tarun Garg, COO & Whole-time Director at Hyundai Motor India, at the Society of Indian Automobile Manufacturers (SIAM) convention in New Delhi.

Garg said the GST reform has already given a boost to demand. “The initial response has been extremely good… bookings have gone up dramatically,” he said, adding that the timing is ideal with the festive season starting.

Hyundai expects the industry to swing from a 2% decline till August to about 5% growth by March. “That’s a 7% turnaround starting September,” Garg said.

Exports are also playing a key role in Hyundai’s strategy. “We are Hyundai’s biggest base outside Korea. With exports growing in double digits and domestic sales now picking up, this will be a double engine growth for Hyundai,” he explained.

Also Read: GST and tax cuts may lift sentiment, but earnings bar stays high: Vetri Subramaniam

Adding to that momentum is the company’s upcoming Pune plant, which will take Hyundai India’s total capacity close to 1 million units when it comes onstream in 2025-26 (FY26).

Hyundai is also preparing for a shift in consumer preferences. “Electric penetration was stagnant at 2.4% for two years, but this August it has already reached 6%. The direction is very clear,” Garg said, pointing to rising demand for EVs alongside petrol, CNG, and hybrids.

Hyundai Motor India has a market capitalisation of around ₹2,02,575 crore, and its shares have risen nearly 40% since its listing on October 22, 2024.

Also Read: Demeter’s Agarwal sees auto stocks revving up on GST cuts, broader consumption to gain

For the entire interview, watch the accompanying video

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