Hyundai to Launch Two New SUVs, Expand Pune Factory in Push to Reclaim Market Share

Hyundai Motor India Limited has announced its Q4 and whole-year FY 2025-26 financial results, coinciding with the company’s 30th anniversary of operations in India.

As part of its larger overall expansion plan for India, Hyundai will launch two completely new SUV models within the 2026-27 financial year. One will be a new electric mass-market compact SUV, developed primarily in India on a localised platform, with multiple battery capacity options. It will likely be similar to the Hyundai Inster EV which is sold in several other markets, intended to compete with the Tata Punch EV or Nexon EV.

The other will be an ICE model, potentially with strong hybrid and CNG options. The company is reported to be working on a premium three-row SUV positioned above the Alcazar, and a compact crossover model based on the global Hyundai Bayon. Both new models will be manufactured at the company’s Sriperambudur plant in Tamil Nadu and will also be exported to other countries.

The company slipped from second to fourth place in terms of passenger vehicles sales in India in FY 2025-26. However, it is hoping to keep investors happy by emphasising its strong brand presence and customer trust in India, as well as its ambitions for future growth, with production expansion set to get a boost to 11.4 lakh units per year by 2030, when Phase II of its Pune plant is ready. The current-gen Hyundai Venue was the first model to be manufactured in Pune, after the company took over and revived GM’s former plant.

On its earnings call, Hyundai announced that it had achieved its highest-ever quarterly domestic sales in Q4 FY26, thanks largely to significant price drops when the GST 2.0 regime was rolled out last year. Wholesale volume increased by 8.7 percent YoY to 2,08,275 units from 1,91,650. Whole-year sales were up just 1.7 percent to 7,75,031 units, compared to 7,62,052 last year. Profit after tax (PAT) fell by 3.7 percent YoY in FY26, down to ₹5,431 crore from ₹5,640 crore the previous year.

The company also reported improved rural penetration, plus its highest-ever quarterly CNG contribution, coming in at 18 percent in Q426, driven by rising consumer demand and a renewed focus on the commercial segment.

Hyundai’s product mix for the year was 68 percent SUVs, 18 percent hatchbacks and 13 percent sedans. Interestingly, SUV share declined slightly overall YoY from 69 percent to 68 percent, and more sharply from 69 percent to 64 percent YoY in Q426. Hatchback and sedan share both grew in Q4, likely thanks to price cuts following the introduction of GST 2.0. Electric vehicles still account for only 1 percent of the company’s annual sales, but both diesel and CNG grew slightly, at the cost of petrol variants.

Exports grew 9.4 percent YoY in Q426 and 16.4 overall for the financial year, strengthening the company’s India operations as a manufacturing source for multiple global markets.

The board of directors has recommended a dividend of ₹21 per share, which is 210 percent of the ₹10 face value, subject to approval by shareholders. Capex for the 2026-27 year has been set at ₹7,500 crore, which will be spent on Phase II of the Pune plant as well as upgrades to the company’s Tamil Nadu facilities.