Hyundai Motor India Ltd (HMIL) is navigating FY2025–26 with cautious optimism as global uncertainties, high base effects, and macroeconomic volatility continue to affect the automotive industry.
Against this backdrop, the company is guiding for low single-digit domestic growth, targeting a 7–8% increase in export volumes, backed by sustained demand in emerging markets.
In his address to shareholders in FY-25 Annual Report, Unsoo Kim, Managing Director, Hyundai Motor India, acknowledged the current challenges but reiterated the company’s commitment to long-term, quality-led expansion.
“Despite a complex operating environment, we will stay true to our ‘Quality of Growth’ strategy. Our focus remains on strategic value creation through disciplined operations, localisation, and innovation to meet evolving customer expectations across urban and rural markets,” said Kim.
The company reported its highest-ever domestic SUV contribution in FY2024–25, with SUVs making up 69% of total sales.
This was led by the continued dominance of the Hyundai Creta, which maintained its leadership in the mid-size SUV segment with over 30% market share. The introduction of the Creta Electric further widened the brand’s powertrain portfolio.
Hyundai also reinforced its position as a major global export hub, marking 25 years of vehicle exports from India. The company successfully sustained export volumes despite global disruptions and reaffirmed its status as the largest cumulative exporter of passenger vehicles from the country.
IPO Strengthens Market Position
One of the defining milestones of the year was Hyundai Motor India’s debut on the Indian bourses—the largest-ever Initial Public Offering (IPO) in the country’s history. Kim described the listing as a financial achievement and a vote of confidence in Hyundai’s brand equity, governance, and operational performance.
Within six months of listing, Hyundai Motor India was included in the MSCI Global Index and added to the NIFTY Next 50 and BSE 500, underlining its growing stature among India’s most valued and respected corporates.
Localisation, Capacity Expansion and ‘Make in India’ Push
Hyundai’s new manufacturing facility at Talegaon, set to begin vehicle production in Q3 of FY2025–26, will play a key role in achieving its target of 1 million units of annual production capacity by the decade’s end.
The plant will support both EV and ICE production, allowing the company to better respond to changing demand patterns and drive synergies in manufacturing.
HMIL is working closely with its supplier ecosystem to localise key components and sub-systems as part of its indigenization roadmap. This move supports the ‘Make in India’ and ‘Atmanirbhar Bharat’ vision and will help improve cost efficiency, supply chain resilience, and technology absorption.
“We are focused on expanding our local supplier base through a dedicated indigenisation strategy, strengthening our manufacturing competitiveness and deepening our commitment to India,” Kim added.
Product Pipeline and Innovation Agenda
By FY2029–30, Hyundai plans to launch 26 new models and upgrades, including 6 electric vehicles, 20 ICE products, and hybrid powertrains. This mix will include new models, full-model upgrades, and enhancements to deliver a broader, more responsive product portfolio across price segments and propulsion technologies.
The company continues to democratise advanced safety and convenience features while working to expand access to EV infrastructure and connected services to stay competitive amid increased competition from rivals.