Is Tata About To End Hyundai's Dominance As The Second Biggest Carmaker In India?

The homegrown carmaker has experienced rapid growth in recent years with no signs of slowing down

The Indian passenger vehicle space has been dominated by Maruti Suzuki and its monthly sales figures are almost untouchable for any rival under normal market conditions. Hyundai has been nestled in second place for many years without any competitive threat to its market position but it is now being seriously challenged by another homegrown carmaker: Tata. 

Tata Motors and its impressive lineup of products has slowly been catching up to Hyundai’s monthly sales over the last few years with a slew of new models. Now, it’s right next to it and it really wants that second spot. The first time Tata pulled ahead of the Korean marque in many years was in December 2021, selling 35,299 units compared to Hyundai’s tally of 32,312. It did so again in May 2022 with a monthly sales figure of 43,341 units which was just 1,048 more than its rival.

While Tata may be catching up to Hyundai in terms of monthly sales, the Indian marque still has a lot of ground to cover. According to reports, Hyundai Motor India reported sales of around 4.81 lakh units for FY 2021-22 while Tata sold 3.72 lakh units in the same period.

Likely reasons of growth for Tata Motors

The Indian carmaker has rolled out many new models across segments in the last three years such as the Altroz and Punch, the latter of which has enjoyed high volumes of success already. The brand’s best-seller continues to be the Nexon subcompact SUV which has also been topping its segment’s sales for the last couple of months. It happens to be the only car in India which is available with an option of a petrol, diesel or an EV!  

However, the real game changer for Tata as a brand has been its line of EVs, starting with the Nexon EV. Electric models now account for thousands of unit sales a month for Tata and it has no direct rivals in the affordable EV space. We expect Tata to build on its EV dominance in the coming months with even more models.

Related: 1 In Every 6 Tata Nexons Sold Is An EV

The modern Tata range has also earned global recognition in terms of safety. The Nexon was the first Indian-made car to score a five-star safety rating from Global NCAP, while other new models have also scored four or more stars since then. Meanwhile, Hyundai models made in India have not fared as well in the same tests from GNCAP.

Is the demand for Hyundai cars declining?

Based on the latest sales figures, it would be wrong to state that Hyundai’s sales are declining. It is still the second biggest carmaker in India, Tata has just caught up with it. Aside from the circumstances created by the global pandemic, its growth has been much slower than Tata. Partly due to the fact that Hyundai has enjoyed high volumes for years and also maybe it has been affected by the increased number of competitors in the premium mass-market space like Maruti. It continues to outsell most rival brands but it has lost some of its market share as more alternatives are introduced. 

For example, the sub 4-metre SUV segment now has entries from Nissan, Renault and Kia as well. The Venue was starting to fall behind the competition in terms of premium features for its premium price. In the compact SUV space that Hyundai still dominates, it now has to compete against the likes of the Skoda Kushaq, Volkswagen Taigun, MG Astor and soon from Toyota Hyryder and Maruti Suzuki Vitara.

Also Read: Hyundai Venue N Line Variants Out, Similar To i20 N Line Yet Different

Hyundai is also losing out in terms of cumulative sales to mass market competitors in the more affordable segments. While Maruti dominates the compact hatchback space, Hyundai has discontinued the Santro and the Eon before that. Meanwhile, Tata has capitalised on the entry-level SUV (hatchback sized model with higher ground clearance and rugged design) with the Punch. 

Competition is good for buyers

The increased level of competition between Hyundai and Tata as they vie for second spot in the market could result in better choices for the buyers. Both will continue to update their model lineups with new features, new models and new technologies.

Read More on : Nexon AMT