Hyundai Motor India Ltd (HMIL) is targeting sales of at least 2.5 lakh units of mid-size sport utility vehicles (SUVs) in 2027, with the company's Managing Director and Chief Executive Officer Tarun Garg describing the figure as a baseline rather than a ceiling. The forecast, shared on Monday, 26 October 2026, is underpinned by the sustained growth of India's mid-size SUV segment and the combined pull of the Creta and the newly launched Bayon.

The Sales Outlook

Garg projected that HMIL will sell approximately 1.7 lakh units of the Creta alone in 2026, setting a strong base heading into the following year. Deliveries of the Bayon are expected to commence during the ongoing festival season, adding a fresh volume driver to the company's portfolio. Garg noted that the mid-size SUV segment now accounts for 16.5 per cent of the overall passenger vehicle market in India.

A Segment That Has Outpaced the Market

India's mid-size SUV segment has expanded at a compound annual growth rate (CAGR) of 25.6 per cent over the past five years, according to company data. The segment is projected to record 64 per cent volume growth between calendar years 2026 and 2032 — a trajectory that has drawn nearly every major carmaker into the space. This comes amid a broader shift in Indian consumer preference away from hatchbacks and entry sedans toward SUV body styles across price points.

What the Bayon Brings to the Table

Garg drew a direct parallel between the Bayon's strategic role today and the Creta's market-making impact a decade ago. 'Creta created a market (of mid-SUV segment) when it was launched 10 years ago. We expect that the launch of Bayon will allow us to do for the next 10 years what Creta did then,' he said. He expects petrol to account for the largest share of Bayon demand, while a compressed natural gas (CNG) variant is slated for launch in January 2027. The company has ruled out a diesel version, with Garg arguing that too many powertrain choices could complicate the product range and create buyer confusion.

AI Voice Assistant and Data Privacy

Garg also addressed data governance concerns surrounding the Bayon's artificial intelligence (AI)-powered voice assistant, which runs on a language model developed by Perplexity. He clarified that user data generated through the assistant would remain with HMIL and would not be shared with Perplexity. The assurance is notable as AI-linked data privacy in connected vehicles is an area of growing regulatory scrutiny globally — including in markets such as the US and South Korea, where related regulations are reportedly already in force.

What to Watch

The success of HMIL's 2027 volume target will hinge on how quickly Bayon deliveries scale post-launch and whether the mid-size SUV segment sustains its growth trajectory amid rising competition from Maruti Suzuki, Tata Motors, and Kia. The CNG variant's January 2027 rollout will also test whether the segment's alternative-fuel appetite extends beyond compact cars.