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Hyundai bets big on Bayon and Creta, targets annual sales of 2.5 lakh units with these two SUVs
Hyundai Bayon is positioned between Venue and Creta.
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Hyundai Motor India is betting big on its mid-size SUVs like the newly launched Bayon and highly popular Creta. The South Korean auto giant that launched the Hyundai Bayon on Monday is aiming to sell at least 2.50 lakh units of the new model and the Creta in 2027.
Interestingly, the mid-size utility vehicle segment, comprising models between 4-4.4 metres in length, including SUVs and MPVs, sold around 9 lakh units in FY26, as the Society of India Automobile Manufacturers (SIAM) revealed. Hyundai alone sold close to two lakh units annually in this segment in the last two financial years with Creta alone, and the segment accounted for close to 35% of the automaker's total domestic sales in FY26.
Tarun Garg, Managing Director and Chief Executive Officer, Hyundai Motor India, said that the company is looking at a volume of over 2.50 lakh units. "Along with Creta and Bayon, we are looking at a volume of over 250,000 units per annum going forward. With this volume, very clearly, we can continue with our segment leadership in the mid-SUV segment. And 250,000 units is not a limit; it is a baseline; we will continue to grow," Garg said while launching the new Hyundai Bayon SUV.
What pushed Hyundai to bring Bayon?
According to Hyundai MD and CEO, the size and growth of the mid-size SUV segment can support more than one Hyundai model. When asked about having multiple models in one category, he said: “It depends on the size of the segment. If there is an opportunity, then why not?”
The new Bayon, which came being positioned between Venue and Creta in Hyundai's portfolio. Hyundai added this model as it seeks to expand in the segment with a second product, while Creta sales have come under pressure recently. Hyundai previously had only the Creta in this segment, compared with three models from Maruti Suzuki – Grand Vitara, Victoris and Ertiga, and two from Tata Motors, namely the Curvv and Sierra.
Sales of the Hyundai Creta dropped over 9% year-on-year (YoY) to 89,727 units in the first six months of FY27. This was contrary to the segment's growth of over 50% across the industry. According to Garg, limited supplies of diesel models to the market were a reason. The diesel Creta commands a waiting period of more than one month.
Speaking on the launch of Bayon, Gaurav Vangaal, Associate Director for Light Vehicle Production Forecasting at Mobility Global, said, "The Bayon matters for Hyundai. It is the company's first new nameplate in the midsize SUV segment since the Creta in 2015. The goal is clear: win incremental buyers instead of shuffling them between Hyundai's own models." He also said that it won't be easy for Bayon. "The segment is brutal, and every major carmaker is fighting for the same customer," he added.
No diesel or electric powertrain in plan for Bayon
Hyundai Bayon's powertrain will be limited to just petrol and CNG, with no plans for a diesel or electric variant. "We believe very strongly that based on our market research, this is a segment where the maximum sales are going to come from petrol," Garg said. He noted that offering every powertrain in one model could confuse customers and make the range harder to manage. Diesel would remain part of Hyundai's wider product line-up, particularly in models where buyers seek its initial torque, he said.
The Bayon will be manufactured at the company's Chennai plant. Garg said that the Bayon will help the company to raise utilisation at the plant after the production of Venue was moved to Pune.
