Hyundai Motor India is gearing up for a robust growth trajectory, leveraging both domestic market recovery and strong export performance following recent GST rate cuts. The automaker's strategic shift comes amid changing market dynamics and regulatory reforms in the Indian automotive sector.

Domestic Sales and Export Performance

Despite facing headwinds in the domestic market, Hyundai has managed to maintain a balanced approach:

• Domestic sales saw a decline of 11.20% to 220,233 units during April-August.
• Exports, however, showed significant growth, increasing by 12.45% to 80,740 units in the same period.

Strategic Shift and Market Focus

Tarun Garg, Whole-time Director at Hyundai Motor India, shed light on the company's strategic decisions:

• During the domestic market slowdown over the past 6-8 months, Hyundai increased its focus on exports.
• This shift was partly due to previous capacity constraints that limited the company's ability to pursue a dual-market approach effectively.

Anticipated Market Recovery

The recent GST reforms are expected to play a crucial role in Hyundai's growth strategy:

• The company anticipates that GST rate cuts will boost sentiment in both rural and urban markets.
• This positive sentiment is expected to drive a recovery in domestic sales.

Capacity Expansion Plans

To support its ambitious 'double engine' growth strategy, Hyundai is significantly expanding its production capacity:

• The Talegaon plant in Maharashtra will add 170,000 units of capacity in October.
• This expansion will increase Hyundai's total annual capacity from 824,000 to 994,000 units.
• An additional capacity of 80,000 units is planned for the Talegaon facility by FY28.
• Upon completion, Hyundai's total annual production capacity will reach nearly 1.1 million units.

Export Revenue Contribution

Hyundai's focus on exports has already shown results in its revenue mix:

• Export revenue contribution has increased from 21% last year to 27% in the first quarter of this fiscal year.

This strategic realignment and capacity expansion demonstrate Hyundai Motor India's commitment to capitalizing on both domestic recovery and export opportunities. As the automotive market evolves post-GST reforms, Hyundai's 'double engine' approach positions it to navigate the changing landscape effectively and drive growth across multiple fronts.

Hyundai Motor India , the country's second-largest automaker, is gearing up for a potential sales boost during the upcoming festive season, buoyed by recent GST reforms. Tarun Garg, Chief Operating Officer of Hyundai Motor India, expressed confidence in maintaining the company's market share amid these developments.

Swift Response to GST Reforms

Hyundai was among the first automakers to pass on the full benefits of GST reductions to its customers, implementing price cuts of up to Rs 2.40 lakh across its model range. This proactive approach positions the company favorably as it prepares for the traditionally high-demand festive season.

Inventory Management and Sales Strategy

Despite facing high inventory levels due to slower sales in recent months, Hyundai views this as an opportunity. The company is leveraging its stock to boost bookings ahead of the festive season, anticipating increased consumer interest following the price reductions.

Market Dynamics: Rural Growth and Urban Potential

Garg highlighted an interesting shift in Hyundai's market dynamics:

• Rural markets have emerged as a significant growth engine, with their contribution to total sales increasing from 19% to 23%.
• Urban markets are expected to see renewed interest, benefiting from the recent GST cuts.

Focus on SUV Segment

Hyundai anticipates strong performance in the sub-Rs 10 lakh SUV segment. To further stimulate sales, the company is offering additional customer incentives beyond the GST benefits.

Long-standing Market Position

Hyundai has maintained its position as the second-largest automaker in India, behind Maruti Suzuki, for two decades. With 29 years of operations in the country, the company's deep understanding of the Indian market continues to be a key strength.

As the festive season approaches, Hyundai's strategic pricing moves and focus on both rural and urban markets could potentially drive sales growth. The company's ability to adapt to regulatory changes and market demands will be crucial in maintaining its strong position in the competitive Indian automotive landscape.