Hyundai Motor India Ltd (HMIL), the country’s second-largest carmaker, has expressed cautious optimism about a gradual recovery in domestic demand sentiments, despite facing persistent macroeconomic and geopolitical challenges. The company’s outlook comes on the heels of a mixed performance in the June quarter, marked by a dip in domestic sales but a notable surge in exports.
Sales Performance and Market Sentiment
- HMIL reported total sales of 60,924 units in June 2025, down 6 percent year-on-year from 64,803 units in June 2024
- Domestic dispatches fell 12 percent to 44,024 units, reflecting subdued consumer sentiment and geopolitical uncertainties
- Exports rose 13 percent year-on-year to 16,900 units, driven by strong demand in emerging markets such as Africa and Latin America
- Q1 FY26 cumulative sales reached 180,399 units, with exports contributing 26.7 percent of total volumes, up from 22.2 percent in Q1 FY25
The company attributes the domestic slowdown to high interest rates, inflationary pressures, and cautious consumer spending, but expects a turnaround supported by monetary easing and improving liquidity.
Strategic Expansion and Production Outlook
- Hyundai is preparing to commence production at its new Talegaon plant in Pune by Q3 FY26, marking its third manufacturing facility in India
- The plant will be equipped to produce both internal combustion engine (ICE) and electric vehicles (EVs), enhancing flexibility and capacity
- Sustainability features such as energy-efficient technologies and carbon footprint reduction measures will be integrated into the new facility
- The Pune plant is expected to deepen Hyundai’s localization strategy and strengthen its supplier network under the Make in India initiative
This expansion is part of Hyundai’s broader plan to scale operations and reinforce its position as a leading exporter of passenger vehicles from India.
Product Strategy and Consumer Trends
- SUVs continue to dominate Hyundai’s domestic portfolio, accounting for 68.5 percent of total sales in FY25
- The Creta remains the flagship model, with over 1.5 million units sold cumulatively across domestic and export markets
- Hyundai launched the Creta Electric in FY25, marking its entry into indigenous EV manufacturing with strong customer response
- Premium features such as ADAS and sunroofs are gaining traction, with ADAS adoption doubling and sunroof penetration reaching 53 percent
Hyundai’s focus on SUVization and premiumization reflects evolving consumer preferences and its commitment to innovation.
Financial Performance and Industry Positioning
- Hyundai closed FY25 with consolidated revenues of ₹69,192.9 crore and net profit of ₹5,640 crore
- EBITDA margin stood at 12.9 percent, supported by disciplined cost management and operational efficiency
- The company completed India’s largest IPO in FY25 and secured inclusion in major indices such as MSCI, NIFTY Next 50, and BSE 500
- Hyundai aims to launch 26 new models by FY30, including 20 ICE vehicles and six EVs, to cater to diverse market segments
Despite short-term challenges, Hyundai’s financial strength and strategic roadmap position it for sustained growth.
Outlook and Industry Expectations
- HMIL anticipates low-single-digit growth in domestic car sales for FY26, in line with broader industry trends
- Export volumes are projected to grow by 7 to 8 percent, supported by rising demand in emerging markets
- The company expects demand recovery to be aided by RBI’s repo rate cuts, improved liquidity from CRR reductions, and income tax relief measures
- Hyundai is also expanding its rural footprint to tap into high-potential markets and drive volume growth
The company remains committed to delivering value and innovation across both domestic and export markets, while closely monitoring global developments.
Conclusion
Hyundai Motor India’s measured optimism about domestic demand recovery reflects its strategic agility and long-term commitment to the Indian market. With robust export momentum, aggressive product launches, and expanded manufacturing capabilities, the company is well-positioned to navigate current headwinds and capitalize on future opportunities. As the automotive landscape evolves, Hyundai’s blend of resilience and innovation continues to drive its growth story forward.
Sources: The Economic Times, Business Standard, Fortune India, Channel News Asia, Hyundai Motor India investor disclosures and earnings call transcript
