Hyundai India Continues Growth Exports Amid Uncommon Shortage of Rare Earth Magnets, Overcoming Domestic Market Difficulties
Hyundai Motor India has reported a strong start to the 2025-26 financial year, with a significant increase in exports and a strategic focus on rural market segments.
In the first quarter of the year, Hyundai recorded a 13% year-on-year rise in exports, with a notable 28% increase in shipments to Africa. This growth was complemented by a 15.6% enhancement in the contribution of Compressed Natural Gas (CNG) vehicles to the company's total sales, driven by the introduction of dual-cylinder technology and new variants.
Despite a 12% decline in domestic sales, SUVs continue to dominate Hyundai's domestic market, accounting for approximately 68% of dispatches. Models like the Creta maintain their leadership in the domestic market.
Hyundai's robust EBITDA margin of 13.3% is supported by an improved export mix and cost optimization efforts, despite some revenue and profit declines compared to the prior year. The company's rural market penetration has also increased to 22.6-23%, highlighting Hyundai's strategic focus on rural segments.
Looking ahead, Hyundai expects a gradual recovery in domestic demand, driven by the monsoon and festive seasons, as well as government policy support. The company is also targeting a 30% share of total sales from exports for the full year, with overseas shipments projected to grow by up to 8% this fiscal year.
Hyundai India's Managing Director, Unsoo Kim, remains optimistic about the continued momentum, with the upcoming festive season and easing interest rates expected to contribute to the revival of domestic demand. The company is also planning aggressive model launches, including six electric vehicles, as part of its strategy to expand in emerging markets like Saudi Arabia and South Africa.
Sources: [1] Hyundai Motor India Reports Strong Export Growth [2] Hyundai's EBITDA Margin Remains Robust [3] Hyundai Focuses on Rural Market Segments [4] Hyundai Begins Engine Production in Pune [5] Hyundai Targets 30% Export Share for Full Year
