Hyundai Motor India Limited (HMIL) sold 82,299 vehicles in October, its best monthly total since it began operations in the country, as festive-season demand and a strong export run lifted both legs of its business. The figure, announced from Gurugram on Sunday, is 17.7 per cent higher than a year earlier.
Domestic sales rose 16.7 per cent year-on-year to 62,799 units, also a monthly record. Exports climbed faster, up 21.1 per cent to 19,500 units. Exports accounted for nearly a quarter of the total, a share that underlines how much weight the company now places on India as a production base for overseas markets.
The Venue, the compact SUV that anchors Hyundai's volumes, had its best month yet in the domestic market at 13,017 units. That is roughly one in five of the carmaker's domestic sales, and it shows how heavily the company's fortunes rest on the sub-four-metre SUV space, where Maruti Suzuki, Tata Motors, Mahindra and Kia compete hard for the same buyers.
The Bayon, launched on October 26, is positioned to widen Hyundai's reach in the SUV bracket between the Venue and the Creta. The seven-trim model, which runs from HX2 to HX10, uses a 115hp 1.5-litre petrol engine paired with a six-speed manual or a CVT. Because it went on sale only in the final week of the month, the Bayon's contribution to October's tally is likely to have been small. Its effect will be clearer in the November and December numbers.
Tarun Garg, managing director and chief executive of HMIL, said the month had been "exceptional" and that strong festive demand, together with momentum in domestic and export markets, had helped set the record. He expects the Bayon to add "further impetus" to growth in India and across more than 50 export markets.
The export growth carries particular weight at a time when domestic passenger vehicle demand has been buoyed by festive buying and a more favourable tax structure for smaller cars. Overseas shipments give manufacturers a cushion against swings in the home market and help spread the cost of local plants and suppliers over larger volumes. Hyundai's rate of export growth outpaced its domestic gain, which suggests that cushion is thickening.
The company has also been widening its product pipeline in India, with the Bayon described as the start of its next product cycle. Whether the new model can pull buyers from rivals in a crowded segment will depend on pricing and on how quickly dealers convert the bookings opened ahead of the launch into deliveries.
For now, October's numbers give Hyundai a strong base going into the remainder of the festive period. The harder test will be holding that pace once the buying season ends and the Bayon has to carry its own weight.
