 "Hyundai Q3 results: Net profit falls 19% to Rs 1,161 crore on demand dip")
India’s second-largest carmaker, Hyundai Motor India (HMIL), posted a 19 per cent decline in consolidated net profit for the October-December quarter (Q3) of 2024-25 (FY25), at Rs 1,161 crore, compared to Rs 1,425 crore during the same period in 2023-24 (FY24). The drop in net profit was primarily due to subdued domestic demand and the impact of geopolitical factors in export markets.
Although volumes declined during the quarter, the company expects demand to pick up and projects low single-digit growth in the fourth quarter.
Tarun Garg, whole-time director and chief operating officer, said the company is aiming for a 20 per cent market share in the electric vehicle (EV) sector in the mid-to-long term, with the newly launched Creta Electric expected to play a pivotal role. The company is also focusing on building an EV ecosystem while exploring alternative technologies such as hydrogen, hybrid, and flexible fuel.
In Q3FY25, the company’s revenue declined marginally by 1 per cent to Rs 16,648 crore, compared to Rs 16,875 crore during the same period in FY24. HMIL sold 186,408 passenger vehicles during the quarter, down 2 per cent from 190,979 units sold in the same period last financial year. This includes 146,022 units in the domestic market, driven by a strong contribution from the sport utility vehicle segment.
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The company achieved its highest-ever compressed natural gas penetration during the quarter, reaching 15 per cent, compared to 12 per cent in Q3FY24. It recorded robust growth in rural penetration, rising to 21.2 per cent from 19.7 per cent in the same period last year.
Export volumes stood at 40,386 units, an 8 per cent decline from 43,650 units. Garg said that exports were impacted by the Red Sea crisis and geopolitical issues in Latin America. However, Hyundai mitigated these challenges by expanding into new markets, including Africa and other emerging regions. The rupee’s depreciation against the dollar resulted in foreign exchange gains of around Rs 30 crore during the quarter. Despite the challenges, Hyundai expressed confidence in improving its volume and profitability, backed by strong fundamentals.
“While challenges persist in the overall market due to global factors, our business fundamentals remain strong. We are confident in our ability to leverage our strengths and actively explore opportunities to enhance our volumes and profitability,” said Unsoo Kim, managing director of HMIL.
HMIL remains optimistic about growing EV penetration in India and is committed to electrification with a holistic approach. The company believes the Creta Electric will drive phenomenal success, build strong momentum, and be a game changer in the EV landscape. It is also building a robust EV ecosystem in India, including localisation and charging infrastructure, and plans to launch three additional EVs in the near future.
“In the mid-to-long term, we believe we can achieve a 20 per cent market share. The Creta Electric will be a critical product that helps us secure additional volumes in 2025 and beyond,” Garg added.