Hyundai Motor India Ltd (HMIL) expects to sell at least 250,000 units of mid-size sport utility vehicles (SUVs), including the Creta and newly launched Bayon, in 2027, driven by rapid growth in the segment and the two models’ ability to attract different sets of buyers, managing director and chief executive officer Tarun Garg said on Monday.
Speaking to reporters on the sidelines of the Bayon launch in Gurugram, Garg said the target was a baseline rather than a ceiling. Deliveries of the Bayon are expected to begin during the ongoing festival season.
Garg said HMIL expects to sell around 170,000 units of the Creta in 2026.
“The mid-SUV segment today is 16.5 per cent of the market already,” he said.
The mid-size SUV segment in India has grown at a compound annual growth rate (CAGR) of 25.6 per cent over the past five years and is projected to record 64 per cent volume growth between calendar years 2026 and 2032.
Garg said the segment’s size and growth provided room for more than one model from the same manufacturer. Hyundai is looking to build on the Creta’s established customer base through the Bayon.
The Bayon is being positioned differently from the Creta, with Hyundai targeting customers who are quicker to adopt new technology.
Garg said the distinction was based on customers’ attitudes and preferences rather than age. The Creta draws on its established brand value and loyal customer base, while the Bayon is aimed at buyers seeking a more technology-led experience.
“Creta created a market of mid-SUV segment when it was launched 10 years ago. We expect that the launch of Bayon will allow us to do for the next 10 years what Creta did then,” he said.
Garg said Hyundai’s market research suggested petrol would account for the largest share of demand in the Bayon’s segment.
The model will also get a CNG option in January 2027.
The company has not opted for a diesel version, as offering too many powertrain choices could complicate the product range and confuse buyers, he said.
Automatic transmissions are expected to account for around 25 per cent of Bayon sales, with a margin of two percentage points either way.
Garg said automatic transmission penetration across Hyundai’s portfolio was around 24-26 per cent, with the share generally higher in larger models.
Garg said user data generated through the Bayon’s artificial intelligence-powered voice assistant would remain with Hyundai and would not be shared with Perplexity, whose technology powers the underlying language model.
SoundHound AI provides the voice technology and works with Hyundai globally.
Garg said Hyundai follows data privacy and security standards used in the US and South Korea, where regulations are more developed than in India.
“While some of these laws have not come in India, but they have been there in US and Korea, much, much stronger,” he said.
Garg said Hyundai would continue selling the Verna despite the shrinking sedan market, as exports made the model viable.
He said the Verna was the company’s largest exported car, with domestic sales of around 7,000-10,000 units annually rising to 40,000-50,000 units when exports were included.
“Verna has a very, very important role in our portfolio. And we intend to continue with it even though the segment is de-growing,” he said.
Hyundai plans to begin exporting the Bayon two to six months after its domestic launch, following its usual product-export strategy.
Garg said the company would announce export destinations in due course. The SUV will be manufactured at Hyundai’s Chennai plant and is intended for more than 50 markets globally.
Garg also clarified that Hyundai Motor India’s $5 billion investment plan for 2025-2030 and Hyundai Motor Group’s $15.5 billion commitment for 2026-2032 have overlapping periods.
He said spending planned for 2025 would be adjusted against the group’s broader plan, with additional investment expected to flow into the Indian subsidiary.
