Hyundai Motor India Limited (HMIL) has closed the Financial Year 2025 on an ambitious note, with its leadership team unveiling a multi-pronged growth blueprint that aims to mitigate sluggish domestic demand through an aggressive product pipeline, expanded export ambitions, and a sharper thrust on electric mobility. The brand’s robust fourth quarter and full-year performance was discussed in detail by Managing Director Unsoo Kim, setting the tone for the company’s FY26 priorities.
Landmark Year On The Bourses
FY25 will be remembered as the year Hyundai Motor India took the plunge into the Indian capital markets with the country’s largest-ever IPO. The listing was not just financially significant but also symbolic of HMIL’s growing local identity and long-term commitment to India. Within six months, the company was included in the MSCI Index, the only large-cap Indian addition in the February reshuffle, and subsequently entered domestic indices such as NIFTY Next 50 and BSE 500. This accelerated capital market recognition strengthens Hyundai’s visibility among global and domestic investors, adding credibility to its plans ahead.
Domestic Sales
In a year marked by muted demand and high base effects, Hyundai reported a marginal 2.6% decline in domestic sales volumes to 598,666 units in FY25. However, this dip hides the firm’s deeper success in reshaping its product mix and tapping into aspirational segments.
SUVs now form 69% of Hyundai’s sales in India, up from 63% in FY24 and 53% in FY23. Flagship models such as the Creta and Alcazar continued to drive volumes. The launch of the Creta Electric in January 2025 was another highlight. According to internal data, around 70% of early Creta EV buyers opted for the top-end Excellence LR trim, underlining Hyundai’s success in premiumisation.
Features like ADAS have seen a doubling in uptake (now 14% of vehicles sold), and sunroof-equipped models now constitute 53% of HMIL’s domestic sales. These indicators reflect a wider customer shift towards tech-rich and higher-priced variants.
Exports - Core Lever Of Growth
Hyundai’s exports continued to provide much-needed stability, registering a slight increase of 0.1% YoY to 163,386 units in FY25. The company also celebrated 25 years of vehicle exports from India, maintaining its position as the country’s largest cumulative exporter of passenger vehicles.
Global disruptions such as the Red Sea crisis and Latin American uncertainties did affect consistency in international demand. However, HMIL’s diversified market strategy and adaptable logistics helped sustain performance. Looking ahead, Hyundai expects its exports to grow by 7–8% in FY26, supported by rising demand from emerging markets. The company is eyeing a status as Hyundai’s largest export hub outside South Korea.
Financial Discipline Amid Market Volatility
On the financial front, Hyundai ended the year with total revenue of INR 691,929 million, a marginal decline of 0.9% YoY. Operating EBITDA stood strong at INR 89,538 million, translating to a 12.9% margin. The company’s ability to maintain double-digit margins amidst tough market conditions was attributed to operational optimisation, cost discipline, and selective focus on high-margin models.
Pune Plant To Anchor Future Expansion
A major pivot in HMIL’s long-term strategy is the Talegaon facility in Pune, set to begin operations in Q3 FY26. This is the company’s first new plant in India after a 15-year gap since the expansion of its Chennai base. Designed as a flexible manufacturing hub, the plant will cater to both ICE and EV models and play a critical role in deepening localisation through a strengthened supplier base in western India.
The Pune facility will also mirror Hyundai’s global sustainability goals, integrating energy-efficient technologies and aligning with its carbon neutrality target of 2045. The added capacity is expected to boost both domestic and export volumes over the medium term.
Product Pipeline: 26 Launches By FY2030
Hyundai has laid out a product roadmap that signals long-term commitment and market responsiveness. By FY30, the company plans to introduce 26 new or refreshed models—20 in the ICE segment and six in EVs. This pipeline includes full model changes, facelifts, and feature upgrades. New eco-friendly powertrains like hybrids are also on the anvil, addressing growing consumer interest in alternatives to traditional fuel.
Hyundai’s first Investor Day, scheduled for September 2025, is expected to shed more light on these launches and broader mid-term growth strategies.
EV Market Response
The launch of the Creta Electric in early 2025 marked Hyundai’s formal entry into India’s competitive EV market. The model’s reception has been encouraging, particularly among premium buyers. More than 80% of customers opted for the long-range variant, and the company is confident this trend will aid broader EV adoption.
Hyundai’s strategy with Creta EV hinges on brand familiarity, feature richness, and a layered trim approach to cater to varied urban and semi-urban needs. As the company prepares for further EV introductions, it remains focused on balancing affordability, range anxiety concerns, and charging infrastructure integration.
Navigating Uncertainty
The macroeconomic backdrop remains complex. While RBI’s rate cuts and direct tax relief measures may support sentiment, HMIL continues to tread cautiously. Rural contribution has shown consistent improvement, and the company is actively enhancing its rural sales and service footprint.
For FY26, Hyundai aims to grow broadly in line with the overall industry, relying on SUV-led premiumisation, rural penetration, and improved capacity from the Pune plant. The brand is also investing INR 7,000 crore in capex to drive growth.
Photo: Mohd Nasir
Also Read