Introduction
Hyundai Motor India Ltd (HMIL) remains a powerhouse in India’s auto landscape, holding the No. 2 spot in passenger vehicle sales. Through FY 2024–25, the company reported domestic sales of 598,666 units, with SUVs leading at 68.5% of volumes—now projected to exceed 70% in FY 2025–26 Despite a challenging domestic backdrop marked by cooling consumer demand in April and May 2025, Hyundai made a strategic play by overtaking Tata Motors in May to claim the third sales rank This article delves into Hyundai India’s current performance, market trends, strategic moves in EVs, capacity expansion, financial resilience, and future roadmap.
1. Sales Snapshot: Resilience Amid Slowdown
April & May 2025: A Mixed Bag
- April 2025: Sales jumped 20.8% YoY to 60,774 units—driven by SUV popularity and the early traction of Creta EV
- May 2025: Market demand cooled; Hyundai, Maruti, and Tata experienced flat or declining sales—Hyundai dropped 11.6% YoY—but still overtook Tata in monthly rankings .
Full‑Year FY 2024–25 Performance
- HMIL recorded 5,98,666 domestic units and 1,63,386 exports, keeping its rank as India’s second-largest OEM
- SUVs comprised ~68.5% of domestic sales—a strategic strength HYUNDAI aims to grow above 70% in FY 2026
Competitive Dynamics
- Despite sales softness, Hyundai’s leap over Tata in May indicates agility in product positioning.
- Competition from Mahindra surged, with its SUV volumes up 28% YoY in April, underscoring market volatility
- Churning May ranking despite lower volumes points to market fragmentation and shifting consumer preferences.
2. SUV-Centric Strategy: Driving Volume & Profitability
SUV Growth & Premium Features
- SUVs account for nearly 70% of Hyundai India’s portfolio, led by premium variants like Creta, Venue, Exter, Alcazar, and Tucson
- Over 53% of FY 2025 sales included sunroofs, and Average Daily ADAS variants rose from 6.7% to 14.3% YoY
- Premium features bolster margins, elevate brand image, and cater to increasingly aspirational consumers.
Dominance of the Creta
- Creta continues as Hyundai’s flagship—April 2025 saw 18,059 units (+9.7% YoY)
- The Creta EV’s January 2025 launch further strengthens the brand’s SUV & EV positioning
- High Creta pickup is critical given Tata Punch’s rise, which outsold Creta by ~1,000 units in April
3. EV Strategy & Market Transition
Creta EV: Mainstream Charging
- Launched in Jan 2025 at Bharat Mobility Expo, Creta EV starts in the ₹18–20 lakh range with 390 km and 472 km variants
- Hyundai has installed ~80 DC fast chargers across key corridors and aims for 600 chargers by 2030
- Anticipating a shift to 5% EV share in 2025 and 17–20% by 2030 .
CO₂ Pressure & Adoption Hesitation
- Greenpeace criticized Hyundai’s slow EV ramp-up, emphasizing India’s EV share is still low (~2%), and Hyundai’s EV push remains limited
- Challenges include high EV cost, infrastructure, range anxiety—though policy clarity supports EVs over hybrids, aligning with HMIL’s focus
EV Tech & Localisation
- HMIL is setting up a battery-pack plant in Sriperumbudur and partnering with Exide to localize batteries
- Utilizes Hyundai’s global E‑GMP platform for efficiency and fast charging—global tech imported to India
4. Capacity Expansion & Export Strategy
Talegaon & Tamil Nadu Investments
- Chennai plants run near 95% capacity; expansion is essential
- Acquired GM’s Talegaon plant to add ~250k units/year, with 170k underway via new hybrid SUV launch in FY 2026
- Planned ₹26,000 cr investment in Tamil Nadu over 10 years for EVs and hybrids
- Combined capacity expected to reach ~1 million units soon
Export Outlook
- HMIL exported 1,63,386 units in FY 2025; India now its second-biggest global market
- Hyundai and Maruti focus on boosting export volumes in FY 2026
- Talegaon gives strategic flexibility in allocating models between domestic and global markets.
5. Financial Health & Strategic Positioning
Q2 FY 2025 Profits & Cost Control
- Q2 net profit dipped 15.5% YoY to ₹1,375 cr; cost management and SUV focus helped offset sluggish sales
- Dividend payout hit 178% in FY 2024—indicative of strong cash flow but reduced reserves from ₹17,741 cr to ₹973 cr
Mcap & Investment Sentiment
- Despite falling volumes, dividend announcements and product launches kept investor confidence intact .
- The planned ₹25k cr IPO marks a strategic step for future expansion and global listing .
6. Competitive Landscape & Risks
Rivalry with Maruti, Tata & Mahindra
- Maruti remains dominant; Tata and Mahindra gain traction with Punch, XUV series, and EV Harrier
- Hyundai’s ability to reclaim the No. 2 spot hinges on its SUV pipeline and EV rollout .
EV Hurdles & Greenpeace Critique
- Greenpeace notes Hyundai needs faster diversification of its EV portfolio
- Reliance on ICE/ICE-SUVs likely until EV ecosystem sufficiently matures.
Global Uncertainty
- Overseas headwinds and macroeconomic pressures may temper growth, making balanced domestic-and-export strategy essential
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