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Informist, Monday, May 11, 2026

By Anand JC

MUMBAI – Hyundai Motor India Ltd. expects its domestic car sales for 2026-27 (Apr-Mar) to grow 8-10% on the back of two new launches – a dedicated electric compact sport utility vehicle and a mid-sized SUV fuelled by petrol and diesel. The Creta-maker remains confident that enhanced capacity through its Talegaon plant and flexible operations provide the leeway to boost growth even further, its management told analysts during a post-earnings call late Friday.

The two new cars will be produced at Hyundai Motor's Chennai plant. The company also expects to outpace the passenger vehicle industry in terms of growth in FY27. Rating agencies have forecast the industry's sales to improve roughly 5% in FY27. Hyundai Motor's domestic car sales and exports in FY26 grew around 2% and 16%, respectively. 

"On exports, while the current macro environment is uncertain, the demand for our products remains intact across key markets, providing us confidence to recover export volumes as the market conditions improve," a senior company official said. "Even in an extremely uncertain environment, we are determined to go the extra mile and deliver volume growth of 8 to 10% in exports as well in FY27. We will be continuously strengthening our export resilience through market diversification and product launch actions," the official added.

The war in West Asia impacted Hyundai Motor's exports in the March quarter. To offset the losses from this front, the company focused "aggressively" on other markets such as Latin America and Mexico. Further, it also sold a wider variety of models in the overseas markets. "That is giving us the confidence that once the whole macro and geopolitical conditions start improving, the volumes should come back very strongly for us," the company said. 

For the March quarter, Hyundai Motor on Friday reported a consolidated net profit of INR 12.56 billion on revenues of INR 189.16 billion. 

The carmaker's management flagged the impact of rising raw material costs on its profitability for the March quarter. "We were able to partly offset these through calibrated price increases (60 basis points in January), along with continued focus on cost control efforts," the company said. It increased prices again in March for Hyundai Venue and is planning to hike prices again in May. Rising input costs impacted the company's margins by around 120 bps on a sequential basis. Of this, the impact of around 50-60 bps was only a one-off. 

"Near term, the commodity headwinds are expected to continue. I think we need to admit that. At the same time, we also have some positive levers for us to drive the margins in the positive direction, even in FY27," the company said. 

On Monday, its shares closed almost 3% higher at INR 1,906.90 on the National Stock Exchange.  End

Edited by Tanima Banerjee

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