Domestic vs. Export: Hyundai’s August 2024 Balancing Act
Hyundai Motor India Limited is reporting sales figures for August 2024 that show a mixed performance. Total sales reached 63,175 units, with 49,525 units sold domestically and 13,650 units exported. These numbers reflect Hyundai’s current market strategy, focusing heavily on the domestic segment, which continues to represent a significant portion of overall sales.
August 2024 sales for Hyundai saw a year-over-year decline when compared to August 2023. Total sales in August 2023 were 71,435 units, marking a decrease of 8,260 units, or -11.56 percent. Domestic sales decreased by 4,305 units, equating to an -8.00 percent change. Export sales saw a sharper decline, dropping by 3,955 units, which represents a -22.47 percent decrease. This trend indicates some challenges in maintaining export volumes.
2024 So Far: Hyundai’s Sales Strategy Shows Resilience
Year-to-date sales for 2024, from January to August, paint a slightly more positive picture. Total sales reached 5,13,510 units, with domestic sales accounting for 4,08,310 units and exports at 1,05,200 units. Compared to the same period in 2023, these figures show a year-over-year growth of 2.06 percent. Domestic sales grew by 1.94 percent, while export sales saw a 2.51 percent increase. Numbers show that despite the August dip, overall performance for the year remains steady.
SUVs (*Redefined to include a wide range of vehicles across segments) continue to be a major contributor to Hyundai’s domestic sales, with a contribution rate of 66.8 percent. Key models such as the Creta, Venue and Exter have played a significant role in maintaining this market share. Popularity of SUVs in India remains strong, which aligns with Hyundai’s strategy to capitalise on this segment.
Hyundai Sees Modest Domestic Sales Uptick from July to August 2024
Month-over-month, domestic sales showed a modest improvement from July 2024 to August 2024. In July 2024, domestic sales were recorded at 49,013 units, while August 2024 saw an increase to 49,525 units, representing 1.04 percent rise. This growth, although minor, indicates a steady demand in the domestic market, even amidst broader fluctuations.
Hyundai is preparing to launch new modelsincluding the Hyundai ALCAZAR, a 6 and 7-seater SUV. 2024 festive season is expected to bolster demand, and Hyundai aims to leverage this timing for a strong market response. The new Alcazar could provide a fresh boost to Hyundai’s overall sales strategy, particularly in the competitive and bigger SUV segment.
Driving Trends: Hyundai’s Strategic Focus on SUVs
A year-over-year analysis indicates challenges for Hyundai in the export market, where a significant drop in sales has been observed. External factors such as global economic conditions, currency fluctuations, production adjustments, and market-specific issues might have contributed to this decline. Hyundai’s focus on domestic sales seems to be a response to these external pressures, ensuring stable performance in its primary market.
The automotive market in India has seen fluctuating demand, and Hyundai’s strategy reflects an adaptation to these changes. By focusing on popular segments like SUVs and preparing for new model launches, Hyundai aims to solidify its market position. This strategy is crucial for maintaining growth amidst a competitive and evolving market landscape.
2024 Hyundai Alcazar Launch: Aiming for a Broader Market Share
As Hyundai moves forward, attention will likely be placed on diversifying its vehicle lineup to capture a broader audience. Hyundai Alcazar launch and its anticipated market reception could be pivotal in shaping Hyundai’s sales trajectory for the latter part of 2024 and beyond.
Hyundai’s market performance, particularly in 2024, demonstrates a balance between capitalising on strong domestic demand and navigating challenges in the export segment. With careful planning and strategic launches, Hyundai is adept to sustain its growth and adapt to the market demand in India.
Tarun Garg, Whole-time Director and Chief Operating Officer, HMIL said, “SUVs, led by models like CRETA, VENUE and EXTER remain a key growth driver for HMIL in 2024 with 66.8% contribution to domestic sales. We are soon going to launch the bold new 6 and 7-seater SUV, Hyundai ALCAZAR and we are confident of strong festive season response to this new launch.”
