Latest news with #HyundaiMotorIndiaLtd
Time of India
21 hours ago
- Automotive
- Time of India
Softness in demand continues to weigh on overall industry sentiments, says Hyundai MD
New Delhi: With domestic sales under pressure, Hyundai Motor India Ltd ( HMIL ) reported a 8 per cent decline in consolidated net profit to ₹1,369 crore for the quarter ended June 30, 2025, compared to ₹1,490 crore in the same period last year. Domestic vehicle sales for Q1 stood at 1.32 lakh units, down 13 per cent year-on-year, from 1.49 lakh. 'The softness in demand continued to weigh on overall industry sentiment, driven by persistent macroeconomic challenges and further intensified by global uncertainties,' said Unsoo Kim , Managing Director, during the post-earnings media briefing on Wednesday. Despite the dip in profitability, the company managed to maintain its PAT margin at 8.2 per cent in Q1 FY26, compared to 8.5 per cent in the corresponding quarter last year. The year-on-year margin contraction was primarily attributed to 'higher discounting' levels. Meanwhile, it also expressed cautious optimism about a gradual recovery in the coming quarters. It cited potential tailwinds such as a favourable monsoon, the upcoming festive season, and supportive government measures including possible interest rate cuts, income tax relief, and the anticipated implementation of the next pay commission. The company's COO Tarun Garg, stated that discount levels averaged 3.4 per cent during Q1, significantly lower than the industry average. 'We expect this to remain in a similar range or slightly lower going forward. We don't anticipate any increase in discounting.' Hyundai also confirmed that it is not facing any disruption related to rare-earth magnets, citing adequate inventory coverage at present. Exports, meanwhile, registered a robust 13 per cent year-on-year growth in Q1 FY26, rising to 48,140 units from 42,600 units in the same quarter last year. The growth was driven by strong demand from Africa and other emerging markets. Product mix Average selling price (ASP) for Hyundai in the domestic market rose marginally to ₹7.65 lakh in Q1 FY26, up from ₹7.60 lakh in the same quarter last year. Creta continued to dominate its portfolio, contributing 36 per cent to overall sales, followed by the Venue at 17 per cent, Exter at 13 per cent, Aura at 11.2 per cent, Grand i10 at 10 per cent, and the i20 at 9 per cent. The share of first-time buyers remained steady at around 40 per cent. SUVs made up 69 per cent of Hyundai's total sales portfolio in Q1 FY26, highlighting the continued consumer shift away from hatchbacks, which saw a year-on-year decline, while sedan volumes remained relatively flat. Garg noted that consumer demand is evolving, particularly in the sub-₹10 lakh segment. 'This body type didn't exist five years ago. Today, in the ₹6-8 lakh range where customers once opted for hatchbacks, they now prefer compact SUVs like the Exter, offering greater space, higher ground clearance, elevated seating, and six airbags as standard,' he said. CNG variants contributed over 16 per cent to Hyundai's overall sales portfolio, while EV contribution remained modest at 1.4 per cent for the quarter. Meanwhile, diesel variants accounted for around 20 per cent of its total sales mix during the period. The carmaker has recently commenced engine production at its Talegaon (Pune) plant, which will cater to both its Chennai and Pune manufacturing operations. The new facility has an installed capacity of 1.5 lakh engines. While the company has not confirmed export plans yet, it noted, 'We will take a call'. CAFE norms Amid the ongoing industry tussle between Maruti Suzuki and Mahindra & Mahindra over exemptions for small cars under the proposed fuel efficiency norms, Hyundai has largely refrained from picking a side. Addressing the matter, Garg said, 'Whatever representations we make, we make them through SIAM. We trust that SIAM will take all industry concerns to the government.' Garg noted that the Creta EV will play a key role in helping Hyundai meet Corporate Average Fuel Economy (CAFE) norms. 'In Q1, the CAFE target was 117.286, and we achieved 112.856, exceeding the requirement by 4.430 points. So, we comfortably passed the CAFE compliance,' he said. Hyundai Motor India will host its first-ever Investor Day on October 15, 2025. As part of its growth agenda, the company has announced plans to launch 26 new products by the end of FY30, spanning internal combustion engine (ICE), electric, and alternative fuel segments.
The Hindu
a day ago
- Automotive
- The Hindu
Hyundai Motor India Q1 net slides 8% to ₹1,369 crore
Hyundai Motor India Ltd. (HMIL) for the first quarter ended June 30, 2025 reported 8% fall in consolidated net profit at 1,369 crore. The company's revenue during the quarter also dropped 5.36% to Rs.16,413 crore from Rs.17,344 crore a year ago. The company witnessed accelerated exports growth and volumes increased 13% on YoY basis, while domestic growth remained subdued, amid macro challenges, the company said in a filing. Unsoo Kim, Managing Director, HMIL said, 'We continued our stated strategy of 'Quality of Growth' in the first quarter of FY26 with balance between domestic & exports, market share and profitability.' 'This strategy helped us to sustain strong EBITDA margin of 13.3% during the quarter, despite tough macro-economic environment,' he said. 'Moving forward, we anticipate gradual recovery in domestic demand sentiments, driven by onset of monsoon & festive season coupled with government policy measures, while on the exports front, we are confident to maintain a positive momentum, in line with our growth commitments,' he added.
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Business Standard
2 days ago
- Automotive
- Business Standard
Hyundai Q1 FY26 profit down 8.1% amid weak demand, macro headwinds
Hyundai Motor India Ltd (HMIL) on Wednesday reported an 8.1 per cent year-on-year decline in consolidated net profit to Rs 1,362.3 crore in the first quarter of FY26, impacted by sluggish domestic demand, weak hatchback sales, a tense geopolitical situation and macroeconomic uncertainty. Hyundai also noted a structural shift in consumer preference towards compact SUVs over entry-level hatchbacks, which has affected segment volumes. Despite cost pressures, HMIL managed to maintain an EBITDA margin of 13.3 per cent, supported by a rise in exports, higher CNG penetration, and disciplined pricing. 'The prolonged softness in demand, driven by macro challenges and global uncertainties, continued to weigh on market sentiment,' said Unsoo Kim, managing director, HMIL. 'However, we remained focused on expanding our rural presence, updating our product line-up, and enhancing brand competitiveness,' he added. Rural markets accounted for 23 per cent of Hyundai's domestic volumes during the quarter — the company's highest-ever rural penetration. 'The hatchback segment is shrinking — it has dropped from 46 per cent of the passenger vehicle market in FY21 to just 21 per cent in Q1,' said Tarun Garg, chief operating officer, HMIL. 'What we're seeing is a clear shift. Instead of small cars, buyers are opting for entry-level SUVs like the Exter. These offer better space, stronger road presence, and align with evolving customer aspirations,' he noted. Garg added that the share of first-time buyers in Hyundai's sales continues to rise, and the contribution of SUVs in rural areas also mirrors the national trend. 'Even in rural markets, SUVs account for 68 per cent of our sales. The myth that rural customers prefer only small cars is changing.' Hyundai's discount levels during the quarter stood at 3.4 per cent — below the industry average. 'We don't see discounts going up,' said Garg. 'In fact, depending on the festive momentum, they may hold or come down.' Hyundai said that while macroeconomic concerns — including the Indo-Pak situation, the Iran-Israel conflict, and tariff uncertainties — had not directly impacted sales, the overall environment remained volatile. He expressed optimism about the second half of the fiscal year. 'We are entering the festive season early this year, with Onam and Ganesh Chaturthi. The impact of recent RBI rate cuts and income tax relief will likely be visible in H2, as salaried customers plan their spending,' he said. 'Forty-four per cent of our buyers are salaried, and we expect the benefits to start reflecting in demand.' On the export front, Hyundai saw a 13 per cent increase in volumes, with exports accounting for 27 per cent of its overall sales mix. The company said it has seen broad-based growth across emerging markets, reinforcing India's role as a global manufacturing hub. 'We are not facing any shortage of rare earth magnets,' said K S Hariharan, head of investor relations, HMIL, during the earnings conference call. 'We continue to work with our vendors to ensure supply continuity,' Hariharan added. Hyundai has also commenced engine production at its newly acquired Pune facility, which will support both Pune and Chennai operations and improve production efficiency. The company will host its first Investor Day on October 15, where it plans to detail its product roadmap, including 26 new launches by FY30 and its strategy for powertrain diversification. SUVs accounted for 68 per cent of Hyundai's total domestic sales during the quarter — significantly higher than the industry average of 54 per cent. The Creta retained its leadership in the mid-size SUV segment, supported in part by the introduction of its EV variant.
Deccan Herald
2 days ago
- Automotive
- Deccan Herald
Hyundai Q1 net profit dips 8 per cent at Rs 1,369 cr
Total income declined to Rs 16,628 crore for the June quarter as against Rs 17,568 crore in the year-ago period, Hyundai Motor India Ltd said in a regulatory filing.
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Business Standard
2 days ago
- Automotive
- Business Standard
Hyundai India Q1 results: PAT falls 8% to ₹1,369 cr on weaker sales
Hyundai Motor India on Wednesday reported 8 per cent year on year decline in its consolidated net profit at Rs 1,369 crore for the first quarter ended June 30, hit by lower sales. Press Trust of India New Delhi Hyundai Motor India on Wednesday reported 8 per cent year on year decline in its consolidated net profit at Rs 1,369 crore for the first quarter ended June 30, hit by lower sales. The auto major posted a net profit of Rs 1,490 crore in the April-June quarter of last fiscal. Total income declined to Rs 16,628 crore for the June quarter as against Rs 17,568 crore in the year-ago period, Hyundai Motor India Ltd said in a regulatory filing. Shares of the company were trading 0.62 per cent down at Rs 2,087.75 apiece on BSE. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
