Hyundai sees automotive demand recovery amid favourable govt policies

Hyundai Motor India (HMIL) anticipates a near-to-mid-term recovery in automotive demand, supported by India’s economic resilience and government policies which were creating favourable ground for the automobile and other consumption-driven sectors amid global uncertainties, the company said in its first annual report since going public.

 

HMIL Managing Director Unsoo Kim acknowledged in the company’s 2024-25 Annual Report -- its first since the company got listed on bourses -- how global disruptions and high base continues to pose challenges for the automotive industry. However, he believes that India’s “forward-looking policies and economic resilience,” including recent repo rate cuts and income tax relief, are creating a more favourable landscape for consumption-driven sectors.

 

Kim noted that with financing becoming more accessible, customer confidence is improving, which is expected to support demand recovery.

 

For the financial year 2025-26, HMIL projects its domestic growth to align with industry estimates of a low-single digit increase. A more robust performance is expected on the export front, with the company forecasting a 7-8 per cent volume growth, driven by strong demand for its products in emerging markets.

 

Hyundai also reported that SUVs accounted for 69 per cent of its domestic sales last year, with its flagship Creta maintaining over 30 per cent market share in the mid-size SUV segment.

 

The annual report also highlighted the company's vision for future growth.

 

Hyundai plans to commence vehicle production by the third quarter of FY26 at its new Pune facility, which aims to produce over 1 million units annually. The company also announced their plans to launch 26 new models and upgrades by FY30, including six electric vehicles (EVs) and 20 internal combustion engine (ICE) vehicles. This portfolio will be complemented by the introduction of eco-friendly powertrains like hybrids.

 

The annual report also shed light on director remuneration for the FY25. Unsoo Kim received a total remuneration of ₹7.06 crore, reflecting a 19.8 per cent increase year-on-year. This remuneration included salary, commission, perquisites, and a performance incentive. Tarun Garg, whole-time director, saw an increase of 38.7 per cent from the previous year reaching ₹5.50 crore.