Hyundai’s Market Struggle: Can It Reclaim Its Position in India?

Hyundai’s Rocky Ride to Recovery: Can the Giant Regain Its Grip on India?

Posted on BizGossips | Auto & Business Insights

Hyundai Motor India, once the unshakable #2 in the Indian auto industry, is facing one of its most critical crossroads in nearly three decades of operation. As homegrown giants Tata Motors and Mahindra & Mahindra accelerate with innovative electric and SUV offerings, Hyundai finds itself fighting not just for numbers—but for relevance.

From Trailblazer to Trouble

It’s hard to forget the revolutionary impact of the Hyundai Santro. Launched in 1998, it transformed the small car market with its unique tall-boy design and Shah Rukh Khan’s magnetic endorsement. From that point, Hyundai rapidly climbed the ladder to become the second-largest automaker in India—a title it held comfortably for over two decades.

But FY25 brought a harsh reality check.

• 🚗 Market share dipped to 14%, the lowest since FY13.

• 📉 Sales dropped by 12% in Q1 FY26 (1,32,259 units vs 1,49,455 units last year).

• 🔻 CY25 H1 sales fell 8% (2,85,809 units vs 3,09,768 units).

• ⚠️ It even slipped to 4th place in Feb and March 2025.

What’s Going Wrong?

While Hyundai’s global brand and legacy remain strong, India’s rapidly evolving consumer preferences are reshaping the battleground. Here's where competitors are winning:

• Tata Motors is capitalizing on the EV boom and building trust in build quality and safety.

• Mahindra & Mahindra has become a force with rugged, tech-savvy SUVs tailored for urban and rural markets alike.

• Maruti Suzuki continues its dominance through sheer volume, affordability, and an unmatched dealer network.

In contrast, Hyundai seems to be playing catch-up. Despite strong models like the Creta and Venue, innovation and adaptability are now demanded at a much faster pace.

Can Hyundai Turn the Tide?

To answer that, it’s worth remembering the words of Hyundai’s legendary founder, Chung Ju Yung:

“To my way of thinking, there may be miracles in religion but not in politics or economics. We succeeded because our people devoted their enterprising spirits. Conviction created indomitable efforts. This is the key to miracles.”

The spirit that once helped Hyundai rise from humble beginnings to global recognition is what’s needed now more than ever. The company must reignite:

• Aggressive product innovation—especially in EVs and compact SUVs.

• Localized R&D and marketing strategies tailored to Indian aspirations.

• Fresh leadership mindset that embraces disruption rather than fears it.

• Price-sensitive yet tech-rich vehicles that appeal to new-age customers.

Final Thoughts: A Make-or-Break Decade Ahead

Hyundai is no stranger to competition, and the Indian market has always been one of the most dynamic in the world. But now, it isn’t just about survival—it’s about reinvention.

Whether Hyundai can pull off a comeback or not will depend not on miracles, but on bold decisions, fast execution, and a return to the very DNA that made it a household name in the first place.

Stay tuned to BizGossips for more insights on India’s biggest business battles!