Hyundai’s Tarun Garg Backs SUVs as India's Top Choice Post-GST

Hyundai Motor India’s COO Tarun Garg said on Tuesday that the recent GST reforms have boosted SUV sales, while small cars—hatchbacks and sedans—continue to lose ground in the passenger vehicle market. His remarks contrast sharply with Maruti Suzuki Chairman R C Bhargava’s recent optimism about a rebound in small car sales.

Speaking after the launch of the new Hyundai Venue facelift, priced from ₹7.89 lakh (ex-showroom), Garg highlighted that hatchbacks’ share in the overall passenger vehicle (PV) market fell from 22.4% in January–August to 20.4% in September–October, and just 20% in October alone, according to SIAM data. Sedans also saw their share slip from 8.5% to 7.9% over the same period.

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Garg noted, “There is a narrative going on how the GST cut has impacted car sales... In the January-August period, the share of hatchback in the overall PV industry sales was about 22.4 per cent. In the September-October period, the share of hatchbacks has come down to 20.4 per cent. In just October, their share was just 20 per cent. This is simple wholesale data from industry body SIAM.”  

Garg, who will take over as MD and CEO of Hyundai Motor India from January 1, said the shift reflects changing consumer aspirations. “Customers now prefer to upgrade to bigger vehicles—they want more value for the same money,” he explained.

While most future launches across automakers are expected in the SUV segment, Garg stressed that the hatchback category remains strategically important for Hyundai.

“The customer had the same amount of money earlier and now. However, he or she can buy a bigger car now. The trends indicate that the customer is upgrading rather than downgrading...It is still all about aspiration,” Garg noted.