Hyundai Motor, Kia post solid growth in India in 5 months on strong SUV sales

Seoul: Hyundai Motor and Kia posted robust sales growth in India during the first five months of the year, driven by strong demand for their sport utility vehicle (SUV) lineups, industry data showed on Sunday.

Hyundai’s passenger vehicle sales in India reached 266,317 units in the January-May period, up 10.1 percent from a year earlier, according to the data from the Society of Indian Automobile Manufacturers (SIAM).

Kia also recorded robust growth, with sales rising 14.6 percent on-year over the cited period, the data showed.

As a result, Hyundai ranked fourth in India’s passenger vehicle market behind Maruti Suzuki, Tata Motors and Mahindra & Mahindra, while Kia placed sixth, trailing Toyota, reports Yonhap news agency.

Combined sales of the two affiliates under Hyundai Motor Group totalled 405,514 units in the January-May period, up 11.6 percent from a year earlier.

The companies’ SUV lineups were the main driver of growth.

Hyundai’s bestselling SUVs, the Creta and Venue, accounted for more than half of its total sales during the period.

At Kia, strong demand for the Seltos and Sonet helped drive growth, with the two SUVs accounting for 76.3 percent of the company’s sales in India.

Meanwhile, Hyundai Motor India increased prices of its vehicles by up to Rs 12,800 from June 1, citing rising input costs, higher commodity prices and increased operational expenses. The company said the extent of the price increase will vary depending on the model and variant.

The automaker said the price increase has been necessitated due to rising input costs, increased commodity prices and higher operational expenses, among other reasons.

While the company continues to optimise costs and minimise the impact on customers, it is constrained to pass on a part of the increased costs to the market through the “nominal” price hike, the exchange filing added.

IANS