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Hyundai, Kia Lose Ground in India Amidst Competition
21 Jun
Summary
- Hyundai-Kia's combined Indian market share fell to 18.8% in FY26 from a 23.1% peak.
- Automakers Tata and Mahindra have significantly gained market share in India.
- Cannibalization and lack of distinct brand positioning hurt Hyundai-Kia's performance.
The combined market share of Hyundai and Kia in India has diminished, falling to 18.8% in FY26, a notable decrease from their peak of 23.1% in FY21. Hyundai's individual share dropped to 12.6%, while Kia maintained 6.2%.
Automotive analysts suggest that internal cannibalization is a primary reason for this decline, with buyers choosing one sibling brand over the other rather than competitors. Experts note that while platform sharing reduces costs, it requires groundbreaking products to maintain market share.
The two brands, though theoretically targeting different buyer segments, often present similar premium features and urban styling. This lack of sharp differentiation leads them to compete for the same consumer base.
Simultaneously, Indian automakers Tata and Mahindra have experienced substantial growth, nearly tripling their market share to 14% and 14.2% respectively. This surge is linked to strong safety ratings, a 'vocal for local' sentiment, and a focus on electric vehicles. Toyota has also captured sales with its hybrid car offerings, an area where Hyundai and Kia are not yet established.
