Hyundai Motor India’s flagship three-row SUV, the Alcazar, has crossed the 100,000-unit sales milestone in the domestic market, achieving the landmark 55 months after its launch in June 2021. The milestone was reached in December 2025, a month that also marked the lowest-ever monthly wholesales for the model, highlighting the growing challenges it faces in an increasingly competitive midsize SUV segment.
In December 2025, Hyundai dispatched 579 units of the Alcazar from its Chennai plant, down sharply from 840 units in November, indicating efforts to reduce rising dealer inventory. Despite Hyundai’s strong brand equity in the midsize SUV space—anchored by the segment-leading Creta—the Alcazar’s sales momentum has weakened after an initially encouraging response.
According to SIAM wholesales data, Hyundai has sold 100,106 units of the Alcazar in India between launch and December 2025, while 40,803 units were exported, taking cumulative sales to 140,909 units. With total production at 143,424 units from the Sriperumbudur facility, inventory stands at around 2,515 units.
After clocking over 25,000 units annually in FY2022 and FY2023, demand began to taper off. In the first nine months of FY2026, domestic sales fell 27% year-on-year to 9,631 units, with December emerging as a new low point. FY2023 remains the Alcazar’s strongest year, with 26,696 units sold in India and 11,334 units exported. However, domestic volumes declined to 20,753 units in FY2024 (down 22% YoY) and 17,132 units in FY2025 (down 17% YoY).
Hyundai attempted to revive interest with a facelift in September 2024, introducing refreshed styling, upgraded interiors, new features and an ADAS suite. However, the update has yet to translate into a sustained sales rebound.
A key factor behind the muted response is intensifying competition. Positioned between the Creta and the now-discontinued Tucson, the Alcazar competes with heavyweights such as the Mahindra XUV700, Tata Safari, MG Hector, Toyota Innova Hycross and Kia Carens Clavis. During April–December 2025, the segment-leading XUV700 sold 57,986 units, significantly outperforming the Alcazar’s 9,631 units.
Priced between ₹14.50 lakh and ₹21.06 lakh (ex-showroom), the Alcazar is offered in 19 variants across multiple trims, including the Knight Edition, with both 6- and 7-seater configurations. Powertrain options include a 1.5-litre turbo-petrol engine producing 160 hp and a 1.5-litre diesel with 116 hp, paired with manual, automatic or DCT gearboxes. Fuel efficiency ranges between 17.5 kpl and 20.4 kpl, depending on the variant.
Looking ahead, CY2026 is expected to intensify competition further in the midsize SUV space with several new launches and updates. Notably, Hyundai’s India product roadmap for 2026 includes models such as the Bayon compact SUV, facelifted Exter, Ioniq 5 and Verna, but no major update for the Alcazar, potentially limiting its ability to capitalise on the segment’s growth momentum.
