Hyundai Motor slips 3% after September sales. Should you buy, hold or sell?

Shares of Hyundai Motor India slipped 3% to ₹2,508 in intra-day trade, and corrected 13% from its record high of ₹2,889.65 touched on September 22, 2025.

Hyundai Motor India share price today

 

Shares of Hyundai Motor India (HMIL) slipped 3 per cent to ₹2,508 on the BSE in Wednesday's intra-day trade after the company reported 10 per cent year-on-year (YoY) growth in total monthly sales of 70,347 units in September 2025. In comparison, the BSE Sensex was up 0.65 per cent at 80,804 at 12:38 PM.

 

In the past two trading days, the stock price of HMIL has dipped 5 per cent, and the stock corrected 13 per cent from its record high of ₹2,889.65 touched on September 22, 2025.

 

However, in the past six months, HMIL has outperformed the market by surging nearly 50 per cent, as against 6.3 per cent rise in the BSE Sensex and a 25 per cent rally in the BSE Auto index.  CATCH LATEST STOCK MARKET UPDATES LIVE

 

Hyundai Motors's September month sales

 

HMIL achieved total monthly sales of 70,347 units (domestic: 51,547 units + exports: 18,800 units) in September 2025, a 10 per cent increase from 64,201 units (domestic: 51,101 units + 13,100 units), in September 2024. Domestic sales stood at 51,547 units in September 2025, driven by GST cut, vibrant festive demand and strong customer interest, the company said.

 

In the month of August 2025, HMIL achieved total monthly sales of 60,501 units (domestic: 44,001 units + exports; 16,500 units), in August 2025.

 

HMIL said the company witnessed highest-ever domestic SUV sales penetration in the history of the company at 72.4 per cent, with CRETA scoring the highest-ever monthly sales at 18,861 units. VENUE too reported a 20-month high sales volume of 11,484 units in September.  ALSO READ | Why Sensex rallied 678 pts, Nifty hit 24,800 after RBI Policy; key reasons

Brokerages view on HMIL, Indian Auto sector

 

The government has further revised the proposed Corporate Average Fuel Efficiency (CAFE) or CAFE3 norms, applicable from FY28. The revised target is now CO2 emission of 88.4gm/km from the earlier expectation of 91.7gm/km and the CAFE2 target of 113gm/km. 

 

Analysts at HSBC Global Investment Research said the brokerage firm is still unclear if the revised target is MIDC (existing) or WLTP cycle. “We think moving away from Modified Indian Driving Cycle (MIDC) to Worldwide Harmonised Light Vehicle Test Procedure cycle (WLTP) in a matter of one year will be tough as the government may need few years of cycle change loss data,” HSBC analyst said.

 

Overall, it's a complicated subject but we summarize three factors that matter the most for CO2 emissions for any OEM – average weight of the portfolio (kgs), weighted average mileage and the powertrain mix. Based on these parameters, it appears that M&M and Hyundai are at a relative disadvantage.

 

From FY29, OEMs would need incremental 2-3 per cent electric vehicle (EV) exposure every year. This is where the targets would incrementally become challenging for M&M and Hyundai while MSIL should still have some headroom.  ALSO READ | Brokerages mixed on Tata Motors post analyst meet; key takeaways here 

With the GST rate cut addressing affordability challenge for compact cars, analysts at InCred Equities feel volume growth will take priority over value growth in the coming quarters, where HMIL’s participation will be limited. 

 

The sharp run-up in its share price recently has made forward P/E valuation 26 per cent higher vs. Maruti Suzuki, which, the brokerage firm, believes will be difficult to sustain. The brokerage firm has raised the target P/E to 24x one-year forward, considering the uptick in the automobile sector’s valuation, but maintain a 20 per cent discount to the leader, Maruti Suzuki, leading to a new target price of ₹2,023 (₹1,612 earlier), while maintaining the REDUCE rating. Market share pressure will be a key thing to monitor. The upside risk is new product launch success, analysts said.