Auto Sales August 2025: Hyundai Motor India Maintains Export Momentum Despite Domestic Headwinds in August 2025

Hyundai Motor India Limited (HMIL) reported total sales of 60,501 units in August 2025, comprising 44,001 domestic units and 16,500 export units. While the company faced a 4.3% year-on-year decline in overall sales, its robust export performance showcased the effectiveness of India's 'Make in India' strategy.

Mixed Performance Amid Industry Challenges

The Korean automaker demonstrated marginal month-on-month growth of 0.7% compared to July 2025, when it sold 60,073 units. However, the company's domestic sales remained relatively flat with just 0.1% month-on-month improvement, highlighting the persistent challenges in India's passenger vehicle market. 

Hyundai's export division emerged as the standout performer with 21% year-on-year growth in August 2025, significantly outpacing the 2.5% month-on-month increase. This strong export momentum contributed to HMIL's impressive cumulative export figure of 118,840 units during January-August 2025, reinforcing its position as a global manufacturing hub for Hyundai Motor Company.Hyundai.pdf

Competitive Landscape Shows Mixed Results

The broader Indian automotive market reflected similar challenges, with most major players experiencing subdued growth. Maruti Suzuki, the market leader, reported 181,000 units with a 0.6% year-on-year decline, while maintaining its dominant position. In contrast, Mahindra & Mahindra posted flat growth at 75,901 units, losing ground despite its strong SUV portfolio that had driven previous months' performance. 

Tata Motors outperformed expectations with 73,178 units and 2% year-on-year growth, while Toyota Kirloskar Motor registered the strongest performance with 34,236 units and 11% year-on-year growth. These divergent performances highlighted the varying strategies and market positioning of different manufacturers. 

Industry Headwinds Persist

The Indian automotive sector continued to grapple with significant headwinds in August 2025. Urban demand remained particularly weak, with industry data showing muted customer sentiment and low enquiry levels. The Federation of Automobile Dealers Associations (FADA) noted that inventory levels stayed steady at around 55 days, requiring calibrated discounting and streamlined finance facilitation to sustain growth. 

Rural markets provided some relief, with targeted schemes and aggressive marketing helping boost hinterland sales toward month-end. However, the overall passenger vehicle retail sales declined 0.81% year-on-year in recent months, with urban areas contributing 62% to sales while rural areas accounted for 38%. 

The industry also faced supply chain bottlenecks, particularly in rare earth materials, affecting electric vehicle production across manufacturers. Additionally, rising competition from domestic players and the transition toward electric mobility posed ongoing challenges for traditional internal combustion engine sales. 

Strategic Positioning and Outlook

HMIL's emphasis on exports aligns with the Government of India's 'Atmanirbhar Bharat' initiative, with Tarun Garg, Whole-time Director and COO, highlighting the company's ambition to establish India as Hyundai's largest export hub outside South Korea. The company's world-class manufacturing technologies combined with skilled Indian workforce capabilities continue supporting this strategic direction.

Despite domestic market softness, SUVs accounted for 71.8% of Hyundai's domestic sales in July 2025, representing the highest proportion since the company's inception. This product mix strength, coupled with the approaching festive season, provides optimism for improved performance in subsequent months. 

The Indian automotive industry's projected subdued growth of 6-7% for FY26 suggests continued challenges ahead, making Hyundai's export-driven strategy increasingly crucial for maintaining growth momentum amid persistently weak domestic demand conditions.