What do Hyundai Motor India and Tata Motors need to do to get ahead of Maruti Suzuki in India?

Maruti Suzuki has long been the dominant force in India’s passenger vehicle market, maintaining a market share exceeding 40% in 2024.  However, competitors like Hyundai Motor India and Tata Motors have been making significant strides, with Tata Motors even overtaking Hyundai in certain months.  To surpass Maruti Suzuki, Hyundai and Tata Motors need to adopt strategic measures focusing on product diversification, technological innovation, and market expansion. 

1. Expand SUV and MPV Offerings

The Indian market has shown a growing preference for SUVs and MPVs. Maruti Suzuki plans to introduce more models in these segments to regain a 50% market share by FY30.  Hyundai and Tata Motors should accelerate the development and launch of new SUVs and MPVs to cater to this demand. For instance, Tata’s Punch became the country’s largest-selling car in 2024, indicating the potential success of well-positioned SUV models.   

2. Invest in Electric and Hybrid Vehicles

With the global shift towards sustainable mobility, electric vehicles (EVs) and hybrids are gaining traction. Hyundai plans to introduce its first locally produced EV and hybrid models in India by 2026 or 2027.  Tata Motors, already leading the EV market with a 70% share, should continue to innovate and expand its EV lineup.  Collaborations with the government to improve EV infrastructure and offering incentives can further boost consumer adoption.  

3. Enhance Production Capacity and Localization

Increasing production capacity to meet growing demand is crucial. Hyundai aims to expand its production capacity to over a million units annually.  Tata Motors should similarly invest in scaling up production facilities and focus on localizing components to reduce costs and improve supply chain efficiency. 

4. Strengthen Dealer and Service Networks

A robust dealer and service network enhances customer satisfaction and brand loyalty. Expanding reach into tier-2 and tier-3 cities can tap into emerging markets. Training programs for dealership staff to improve customer service can also provide a competitive edge.

5. Competitive Pricing and Financing Options

Offering vehicles at competitive prices with attractive financing options can make products accessible to a broader audience. Flexible loan schemes, low-interest rates, and innovative financing solutions can attract cost-conscious consumers.

6. Focus on Quality and Safety

Emphasizing vehicle quality and safety features can differentiate brands in a competitive market. Achieving high safety ratings and promoting these aspects can build trust and appeal among consumers.

7. Leverage Digital Marketing and Connectivity

Utilizing digital platforms for marketing and sales can reach a tech-savvy audience. Integrating advanced connectivity features in vehicles, such as infotainment systems and telematics, can enhance user experience and attract younger buyers.

By implementing these strategies, Hyundai Motor India and Tata Motors can enhance their market positions and work towards surpassing Maruti Suzuki in India’s competitive automotive landscape.