Hyundai Motor India Pinpoints Petrol Dominance and EV Growth Potential as Fuel Mix Diversifies

Hyundai Motor India has revealed a significant shift in its vehicle sales composition during the first half of fiscal 2026, with petrol vehicles cementing its leadership whilst electric vehicles emerge as the fastest-growing segment with substantial growth potential. According to the company's latest investor presentation, petrol models accounted for 70 percent of Hyundai's total sales in H1 FY26, maintaining the automaker's core business strength, whilst diesel vehicles represented 18 percent—a marginal decline from the previous year's performance.

The most compelling development centres on Hyundai's electric vehicle segment, which surged to 1.3 percent of overall sales in Q2 FY26 compared to just 0.1 percent in Q1 FY26, indicating a 1,200 percent sequential growth in EV penetration. This acceleration underscores the company's strategic emphasis on electrification as a key growth vector in India's rapidly evolving automotive landscape.

Hyundai's total EV sales during the first half of fiscal 2026 reached 3,558 units, reflecting the company's initial foray into India's booming electric vehicle market. Whilst this volume appears modest in isolation, it represents an 819 percent year-over-year increase from 387 units in H1 FY25, demonstrating Hyundai's commitment to capturing emerging market opportunities in the EV segment. 

However, the company's EV performance pales in comparison to segment leader Tata Motors, which sold 34,586 units during the same period—nearly ten times higher than Hyundai's output. Tata Motors commands 37.97 percent of India's overall EV market share, establishing itself as the undisputed leader in passenger electric vehicles. This significant gap highlights the competitive intensity within India's burgeoning EV sector and underscores the scale of growth potential available to new entrants like Hyundai. 

The fuel mix diversification reflects broader industry trends wherein petrol vehicles continue to serve as the profit backbone for most manufacturers, diesel models cater to specific customer segments, and electric vehicles represent the growth frontier. Hyundai's strategy of maintaining petrol dominance whilst actively expanding EV capabilities positions the company to benefit from dual growth narratives—stable revenues from conventional powertrains and emerging profits from electrification.

The company's investor presentation indicates plans to introduce new mass-market electric and hybrid vehicles in the coming years, suggesting Hyundai views the EV segment as strategically critical for long-term market expansion. With the EV market already achieving nearly five percent penetration of India's total passenger vehicle sales in H1 FY26 and projected to exceed seven percent by year-end, Hyundai's accelerating EV ambitions align with industry forecasts anticipating electric vehicles and hybrids to command approximately 30 percent market share within the decade.