SUV Surge: The Driving Force of India's Automotive Market Post-GST

The Indian passenger vehicle market is experiencing significant growth driven by SUVs, as consumers look to upgrade to larger cars due to price reductions from recent GST cuts. Hyundai Motor India highlights the increasing shift towards compact SUVs, with significant future investments planned to expand and diversify their automotive portfolio by 2030.

Sports utility vehicles (SUVs) are on the rise in the Indian passenger vehicle market, according to Hyundai Motor India. Customers are increasingly opting for larger vehicles following price reductions due to GST rate cuts. This trend is evident as SUV sales outpace smaller hatchbacks and sedans.

Hyundai's Chief Operating Officer, Tarun Garg, highlighted this shift, noting that SUVs now dominate Hyundai Motor India's sales portfolio, with predictions that they could represent up to 80% of sales by 2030. The compact SUV segment, in particular, is thriving, fueled by significant taxpayer benefits.

To address this expanding demand, Hyundai has outlined a roadmap to launch 26 new products, invest Rs 45,000 crore by FY30, and strengthen its multi-powertrain offerings. The company plans to cement its presence with more local manufacturing and export opportunities.

(With inputs from agencies.)