Hyundai Navigates Headwinds: Cautious Optimism as Demand Recovery Takes Center Stage

Hyundai Motor India Limited (HMIL) is striking a note of cautious optimism as it eyes a gradual recovery in both domestic and export demand, despite recent production challenges and broader market uncertainties. The company reported robust sales of 58,701 units in May 2025, reclaiming the third spot in India’s passenger vehicle market and demonstrating resilience amid a week-long maintenance shutdown at its Chennai plant.

 

Key Highlights:

 

Resilient Sales Performance: May 2025 saw HMIL sell 43,861 units domestically and export 14,840 units, outperforming Tata Motors and regaining its third-place ranking in the Indian market—even as plant maintenance temporarily constrained supply of key models.

 

Management Outlook: Tarun Garg, COO of HMIL, acknowledged ongoing challenges in domestic demand but expressed confidence in a steady, gradual recovery. He cited easing geopolitical tensions, central bank interest rate cuts, and recent income tax relief as potential catalysts for improved market sentiment and vehicle financing in the second half of 2025.

 

SUV Surge and Product Innovation: SUVs now account for 69% of Hyundai’s domestic sales, driven by strong demand for the Creta Electric and Alcazar facelift. The company’s focus on premiumization, connected features, and CNG technology has helped sustain volume and profitability.

 

Financial Health: Despite a marginal drop in annual revenue (down 0.9% year-on-year), Hyundai maintained healthy EBITDA and EBIT margins, aided by cost optimization and government incentives.

 

Strategic Export Growth: Consistent export volumes have helped Hyundai diversify risk and strengthen its global presence, aligning with India’s export-oriented manufacturing vision.

 

With inventory levels under control and a robust product pipeline, Hyundai remains cautiously optimistic about a gradual but sustained demand revival in the coming quarters.

 

Sources: India Today, Business Today, HDFC Sky, Hyundai Motor India Q4 Earnings Transcript