Hyundai set to hit 10 million India sales as SUVs fuel growth

Hyundai is just 115,040 vehicles short of selling 10 million cars in India. The company had reached 9,884,960 cumulative sales by the end of September. This is a major milestone because India has become one of Hyundai’s most important and fastest-growing markets.

Hyundai entered India in 1996 and began production and sales in 1998 with the Santro hatchback. It reached 1 million cumulative sales in 2007 and 5 million in 2017. Stronger demand for SUVs has since accelerated its growth, especially through models such as the Creta, Venue, Alcazar and Exter.

Hyundai sold 471,724 vehicles in India during the first nine months of the year. If sales continue at a similar pace, the company should cross 10 million before year-end. The milestone will mark nearly three decades of expanding products, local production and customer reach.

An SUV, or sport utility vehicle, is generally a taller vehicle with a more upright cabin, extra ground clearance and room for passengers or luggage. The source does not provide a formal definition, but it links SUV popularity in India to practical needs. Many buyers want space for large families and vehicles that can handle challenging road conditions.

Hyundai’s Creta shows how this strategy worked. Introduced in 2015 as the company’s first SUV developed specifically for India, it sold more than 40,000 units in its first year. It also won the 2016 Indian Car of the Year award. Hyundai later added the Venue, Alcazar and Exter, broadening its SUV choices.

SUV demand has become central to Hyundai’s business. SUVs represented nearly 70 percent of its Indian sales last year and 67 percent during the first nine months of this year. Hyundai plans to lift that share to 80 percent by 2030.

SUVs have become Hyundai’s main sales engine in India. Last year, they accounted for nearly 70 percent of the company’s total Indian sales. This is a sharp change from earlier periods when hatchbacks and compact cars formed a larger part of Hyundai’s lineup and customer base.

The latest figures show the trend continuing. Hyundai sold 398,937 SUVs in India last year. During the first nine months of this year, it sold 316,026 SUVs out of 471,724 total vehicles. SUVs therefore represented 67 percent of sales during that period, remaining close to their record share.

Hyundai is preparing for an even stronger SUV mix. CEO Jose Munoz said the company wants SUVs to account for 80 percent of Indian sales by 2030. The automaker currently offers eight SUV models, including the locally produced Creta Electric, launched in 2025.

Hyundai built its Indian position by matching products to local demand. It began production in 1998 with the Santro hatchback at its Chennai plant. The model quickly became a household name and helped Hyundai secure the country’s second-largest market share in its first year. Later, the i10, i20 and Verna expanded its compact-car lineup.

The Creta created another important breakthrough. Launched in 2015, it was Hyundai’s first SUV developed specifically for the Indian market. Its design addressed large families and difficult road conditions. The Creta sold more than 40,000 units in its first year and won the 2016 Indian Car of the Year award, giving Hyundai a powerful foothold in the growing SUV market.

These models supported rapid cumulative growth. Hyundai reached 1 million Indian sales in 2007 and 5 million in 2017. It later added the Venue, Alcazar and Exter, helping its SUV portfolio become central to the company’s progress toward 10 million sales.

Hyundai’s shift toward SUVs has lifted both sales volume and the importance of its Indian business. Annual sales first passed 500,000 vehicles in 2016. The company’s market share later peaked at 17.4 percent in 2020, showing how strongly its lineup performed as Indian buyers increasingly favored SUVs.

The Creta was the key early example. Introduced in 2015 for Indian customers, it addressed family space and challenging roads. Hyundai then expanded with the Venue in 2019, the three-row Alcazar in 2021 and the Exter in 2023. These additions gave customers more SUV sizes and helped make SUVs the company’s main sales category.

Hyundai posted record annual sales of 605,433 vehicles in 2024. It sold 398,937 SUVs that year, nearly 70 percent of total sales. During the first nine months of this year, SUVs still represented 67 percent, supporting the company’s expected 10 million-sales milestone.

Hyundai is expanding production because India is both a major sales market and a potential global manufacturing base. The company wants to turn the country into a key production and export hub. Greater capacity can support its growing Indian business while also supplying vehicles to markets outside the country.

Its new Pune plant is already operating. Hyundai now has annual Indian capacity of about 1 million vehicles, including 824,000 units at two Chennai plants and 170,000 at Pune. The company plans to raise Pune’s capacity to 250,000 units by 2028 and 320,000 by 2030.

Those plans would lift total Indian capacity above 1.1 million vehicles. Hyundai also aims to localize more than 90 percent of automotive parts by 2030 and raise exports to as much as 30 percent of Indian output. Together, these steps are intended to strengthen cost competitiveness and expand India’s role in Hyundai’s global network.

A vehicle-parts localization rate is the share of a vehicle’s components sourced or produced locally rather than imported. The article does not give a formal definition, but Hyundai’s target is clear: more than 90 percent of automotive parts in India should be localized by 2030. This would make the Indian operation more self-sufficient.

Producing more parts locally can reduce reliance on overseas suppliers and limit exposure to international shipping, exchange-rate changes or import costs. It can also connect vehicle assembly more closely with Indian suppliers. These mechanisms can lower overall production costs, although the article specifically states only that localization is intended to strengthen cost competitiveness.

Hyundai is pairing localization with higher production and exports. Its Indian capacity is planned to rise above 1.1 million vehicles by 2030, while exports could reach 30 percent of output. More local parts would help support that production-and-export strategy.