Focusing on exports over domestic discounts, says Hyundai India COO

Hyundai aims to raise exports to 30% of output by FY30 as domestic sales slow; six EVs among 26 product launches planned as part of long-term growth strategy

Hyundai Motor India (HMIL) is currently focusing on boosting exports to its key markets in West Asia and Africa instead of offering deep discounts in the domestic market that is showing signs of stress. This, overall, shows a balanced approach between volume sales and profit, its Chief Operating Officer (COO) Tarun Garg told Business Standard in an interview on Tuesday.

 

“We have the flexibility that whenever the domestic market is showing signs of stress, instead of going after discounts too much and compromising the quality of sales, we have this lever of exports. So, we have accelerated that lever, increasing our export volumes. This has helped keep discounts under check,” Garg said.

 

HMIL’s domestic sales declined 4.2 per cent year-on-year (Y-o-Y) to 153,550 units in the fourth quarter of 2024-25 (FY25), while its exports grew 14.1 per cent Y-o-Y to 38,100 units during the same period. Currently, about 21 per cent of HMIL’s total production is exported and it wants to take it up to 30 per cent by FY30. 

 

“Our new plant is coming up in Talegaon, Pune. Our new model cycle will come up in the second half of FY26, and that will again give us an opportunity to grab back the lost domestic market share. While volumes are very important, and we are very passionate about our ranking in the domestic car market, we want to have a balanced approach,” Garg said.

 

HMIL’s third manufacturing facility, located in Talegaon, is expected to begin production in the third quarter of FY26.

 

“Siam has projected around 1 per cent growth in the industry’s car sales for the entire FY26. Our growth is also expected to be in the range of 0-1 per cent. However, for exports, we anticipate a stronger growth of 7-9 per cent in FY26,” Garg said.

 

Last Friday, HMIL reported a 3.8 per cent Y-o-Y decline in consolidated net profit to ₹1,614 crore in the fourth quarter of FY25, citing a high base effect and macroeconomic uncertainties that affected consumer sentiment and purchase decisions.   

“From our Q4 results, you can observe that Hyundai has always had a very balanced approach towards volume and profit. The domestic market has been tough...Our Ebitda margin was 12.9 per cent for the entire FY25 but in the fourth quarter, it stood at 14.1 per cent. We were able to keep our discounts at two per cent in the fourth quarter. We focused on exports in the fourth quarter, recording 14 per cent growth, because in the past few years, the export volumes had not grown. Even in April, our exports from India increased by 20 per cent,” Garg stated.

 

As part of its long-term strategy, the carmaker last week announced an aggressive pipeline of 26 product launches by FY30, including a mix of new models and facelifts. Garg added that the company was planning to launch hybrid cars in India and they would be over and above the aforementioned 26 products.

 

However, the thrust will remain on electric vehicles (EVs). Out of the aforementioned 26 scheduled launches, six would be EVs. “You can very clearly see that the major thrust of the company is towards electric cars, and it is evident from the way we are localising the supply chain as well as the charging infrastructure. We have already localised battery packs and we are in process of localising the cells along with an Indian partner,” Garg said.