Hyundai looks beyond Creta with new mid size SUV, compact EV launches in FY27

South Korean carmaker Hyundai Motor India is eyeing volume growth of 8-10% for the financial year 2026-27 on the back of two new sport utility vehicle launches: a mid-size internal-combustion engine (ICE) SUV and a compact electric SUV.

The launch plans for two new nameplates comes after Hyundai’s domestic sales declined 2.3% year-on-year to 584,906 units in FY26. Homegrown automaker Mahindra & Mahindra (M&M) and Tata Motors Passenger Vehicles raced ahead in sales, pushing Hyundai to the fourth spot after more than two decades.

“Both these launches are expected to meaningfully boost our volumes and add as a powerful catalyst for the next phase of our growth,” Tarun Garg, managing director and CEO of Hyundai Motor India, told reporters in a media conference call after the company announced its fourth-quarter earnings.

Of these two new launches, one will mark the debut of Hyundai’s new localised dedicated EV in the compact SUV space, while the other will expand its presence in the ICE SUV segment. Hyundai currently leads the mid-size SUV segment with Creta.

“These launches are positioned in high demand segments aimed at broadening our portfolio and deepening our presence,” Garg said. “The upcoming EV will mark our entry into the mass volume segment while the ICE SUV will further reinforce our position in the mid-SUV category,” he explained.

Hyundai, like its Japanese rival Maruti Suzuki, currently lacks a mass-market EV model in India. Homegrown carmakers Tata Motors Passenger Vehicles and Mahindra & Mahindra have such models in their portfolio.
Backed by these product actions and other initiatives, Hyundai has guided domestic volume growth of 8-10% in FY27.

Hyundai will also look at exporting the two new nameplates in due course, said Garg, adding that the upcoming models will be manufactured at the company’s Chennai plant.

Hyundai began operations at its Talegaon manufacturing facility in Pune in 2025. Along with the Chennai plant, the two units have a combined annual production capacity of 9.94 lakh units.

“The Pune capacity will be expanded to 320,000 units annually and the overall capacity to 1.1 million units by 2030,” said Garg.
The South Korean carmaker’s growth ambition plans will be fuelled through investments of around of Rs 7,500 crore in fiscal 2027, marking the highest ever capex in recent years. The automaker is also targeting EBITDA margins within guided range of 11-14%.