Hyundai Motor India Ltd is wanting ahead to a gradual development path, as earnings rose for the second straight quarter on the again of upper rural gross sales, rising exports and rising gross sales of high-margin sports activities utility automobiles (SUV). The firm expects the expansion momentum to proceed in the March quarter, with its upgraded Venue SUV already securing greater than 80,000 bookings.
The Indian arm of the Korean carmaker recorded its highest-ever share of gross sales from rural areas at 24%, with cuts to items and companies tax (GST) powering gross sales in the course of the quarter. Exports have been up 21% to 48,888, with one in 4 Hyundai automobiles shipped overseas. Together with a rise in the share of SUVs in its gross sales, Hyundai noticed earnings rise 6% from a 12 months in the past to ₹1,234 crore, whereas income rose 8% to ₹18,217 crore.
In keeping with managing director and chief government Tarun Garg, the implementation of GST reforms introduced better readability and stability to the oblique tax framework. “This, coupled with rate of interest cuts, considerably improved buyer shopping for sentiments and introduced in a renewed wave of optimism,” Garg mentioned at a post-earnings press convention.
“Importantly, structural shifts in client preferences continued to additional strengthen with rising adoption of SUVs, rising acceptance of latest applied sciences and a transparent choice for greater worth and feature-rich merchandise,” Garg mentioned on the name, his first since taking on as the primary Indian MD and CEO of the corporate on 1 January.
Hyundai India noticed 4 straight year-on-year quarterly losses between Q2 FY25 and Q1 FY26, earlier than getting into the revenue path in the September quarter.
Peer efficiency
Hyundai is the second carmaker to announce earnings, after India’s largest carmaker Maruti Suzuki India Ltd. Maruti Suzuki recorded a 4% year-on-year rise in revenue after tax to ₹3,879 crore, hit by a one-time provision of ₹593 crore owing to the brand new labour code. Income in the course of the quarter surged 28% to ₹50,959 crore on the again of the highest-ever quarterly gross sales of 667,769 items.
Hyundai, which misplaced its No.2 carmaker tag by gross sales in 2025 to Mahindra and Mahindra, is bullish on development on the again of coverage and market developments. Shares rose 1.54% towards a 2.13% acquire in Nifty Auto on Monday, when it introduced the outcomes in the course of the market hours.
“By leveraging alternatives from the brand new Venue and exploring new markets, we’re assured of sustaining development momentum in This autumn and past,” Garg mentioned.
For Hyundai, which is going through intense competitors from Mahindra and Tata Motors, a big share of incremental gross sales development is coming from exports. Gross sales to worldwide markets grew 21% to 48,888 towards only a 0.4% development to 146,548 items in the home market in the course of the October to December quarter.
In India, Hyundai noticed its gas and product combine largely remaining secure in the course of the quarter as in comparison with final 12 months. The share of SUVs was at 70% in home gross sales, up one share level from a 12 months in the past. Inside combustion automobiles made up 83% of gross sales, down from 85%. Share of EVs stood at 1%, with the corporate having solely two electrical automobiles fashions Creta Electrical and Ioniq 5.
With proposed emission norms coming in from April 2027 subsequent 12 months, the corporate notes that it would steadily improve the penetration of unpolluted gas automobiles in its portfolio.
“When you see a CNG combine, the CNG combine in our vary has been repeatedly going up. In quarter three, we had 16% CNG penetration, which was the best ever quarterly CNG combine. Correspondingly, you understand, we have been hovering round 14-15% final 12 months. Now we’re at 16%. And in truth, it’s repeatedly going up,” Garg mentioned.
The high government added that the corporate’s plans are in place to introduce new electrical automobiles and different clear gas automobiles which can put it in place to fulfill future emission norms.
Different development drivers for the corporate would come with its rising rural penetration, together with entry into the taxi section, the place it will likely be making a brand new fleet of automobiles focused for business operations.
Hyundai is aligning its development with the trade’s projection of 5-6% volumes development in the subsequent monetary 12 months. “We’re additionally sticking with that trade development. So, I believe our mannequin combine is effectively positioned to seize all of the alternatives that are developing due to the GST reduce,” Garg mentioned.
“One other factor which we talked about was the taxi, which has acquired some nice responses. In fact, it’s only one month, however the preliminary response is superb. I believe that will even assist us to get extra volumes going.”
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