Hyundai Motor and Kia have recorded their highest-ever quarterly sales in the first quarter of this year in India, the world's third-largest automobile market. This performance raises the question of whether the Indian market can serve as a buffer against potential "tariff bombs" from U.S. President Donald Trump. According to monthly sales statistics released by the Society of Indian Automobile Manufacturers (SIAM) on April 13th, Hyundai sold 153,550 units and Kia sold 75,576 units in India during the first quarter, totaling 229,126 vehicles. This represents a 1.5% increase compared to the previous record of 225,686 units sold in the first quarter of the previous year.

Notably, Kia has achieved its best performance since its initial entry into the Indian market in August 2019.

Their combined market share in the first quarter stood at 19.4%, with Hyundai holding 13.0% and Kia at 6.4%. In terms of brand-specific sales rankings, Hyundai secured the second position following Maruti Suzuki, while Kia ranked sixth. It is important to note that while Hyundai maintained a strong second position for an extended period, recent reports indicate fluctuations in monthly rankings. For example, in February 2025, Hyundai's retail sales placed them fourth behind Maruti Suzuki, Mahindra & Mahindra, and Tata Motors, as per data from the Federation of Automobile Dealers Associations (FADA). However, the overall Q1 performance still showcases strong sales figures for both Hyundai and Kia.

The surge in sales in the Indian market was driven by localized models and sport utility vehicles (SUVs). SUV sales, in particular, accounted for approximately 80% of the total, reaching 181,758 units. Among these, popular models such as the Hyundai Creta, Venue, and Exter, along with Kia's Sonet and Seltos, amounted to a combined 121,582 units, representing over half of the SUV sales. By model, the Hyundai Creta emerged as the top-selling vehicle for both Hyundai and Kia, with 48,449 units sold. The Creta was the first locally produced SUV model for Hyundai, launched in July 2015. Other strong-selling Hyundai models included the Venue (31,195 units) and the Exter (17,330 units).

Kia also recorded significant sales with models like the Sonet (22,497 units), Seltos (19,441 units), and Carens (16,352 units). The Kia Syros, a compact SUV launched in India in February, contributed significantly to this success with 15,986 units sold.

Untapped Potential in a Vast Market

Despite a population of 1.4 billion, India's car penetration rate is still relatively low at 8.5%, indicating substantial growth potential.

Hyundai has been actively expanding its presence in India. In 2023, the company acquired General Motors' Pune plant in Maharashtra and is preparing to commence operations in the second half of this year, aiming for an annual production capacity of 200,000 units.

Furthermore, Hyundai Motor India Ltd. (HMIL) became the first overseas subsidiary of Hyundai Motor Company to be listed on the Indian stock market in October of last year. At the listing ceremony, Hyundai Motor Group Chairman Euisun Chung stated, "India is the future," and affirmed the company's plans to expand investment and strengthen research and development in the country.

The strong performance of Hyundai and Kia in the Indian market, coupled with the market's considerable growth potential, suggests that India could indeed become a crucial market to mitigate the impact of potential tariff hikes imposed by the Trump administration on other regions. The focus on local production and models tailored to Indian consumers further strengthens their position in this dynamic and expanding market