Hyundai Sends Investigation Team to India as Position Declines

Hyundai Motor Co (HMC) deployed a special assessment team to India in April to investigate the continuous decline in market share of its local subsidiary amid growing competition, ET Auto has reported. Hyundai Motor India Ltd (HMIL) concluded FY25 with just 14 per cent market share -- its lowest performance since FY13.

Hyundai's Number Two Position Under Threat

The Korean automaker's long-established second-place ranking in India's passenger vehicle market, behind industry leader Maruti Suzuki, is increasingly vulnerable. Despite strong continued performance from the Creta SUV model against competitors, HMIL dropped to third position in February, briefly recovered to second in March, but then plummeted to fourth place in April for factory shipments. 

Domestic manufacturers Mahindra & Mahindra and Tata Motors successfully overtook Hyundai during this period. While HMIL maintained its second-place standing for the full FY25, this position appears precarious just months after completing an IPO that generated over ₹27,870 crore.

HQ Responds with Fact-Finding Mission

A delegation consisting of six executives from Hyundai's international headquarters -- representing sales, marketing, financial, and product development departments -- conducted a week-long assessment in India last month. This team engaged in comprehensive discussions with key stakeholders including dealers, customers, suppliers, industry analysts, and financial partners, according to sources familiar with the situation, the report added.

Though HMC executives regularly visit the Indian division, this marks the first instance of a cross-departmental team being dispatched with the specific objective of assessing market conditions and competitive challenges directly.

"India represents a crucial market for Hyundai -- their third largest globally -- and the headquarters is understandably worried about the brand losing momentum," stated one informed source. 

Another source noted, "They are monitoring the increasing consumer preference for domestic brands—especially Mahindra."

Expansion Plans Continue

These internal concerns became public knowledge last month during HMC President and CEO Jose Munoz's first official visit to India, where he addressed local staff members at a company gathering. While highlighting the strategic importance of the Indian operation, Munoz reportedly instructed employees to accelerate growth efforts.