Hyundai Motor India Limited shares declined as much as 2.00% on Friday following the release of December sales figures that fell short of market expectations. The automaker reported total sales of 58,702 units, missing the Street estimate of 62,667 units despite achieving 6.60% year-on-year growth.

December Sales Performance

The company's December performance highlighted contrasting trends between domestic and export markets:

Domestic business proved to be a drag with minimal growth of just 0.50% at 42,416 units, while exports remained the primary growth driver with sales surging 26.50% to 16,286 units compared to the previous year.

Leadership Transition

In a significant development, the company announced that Tarun Garg has assumed charge as managing director and chief executive officer from January 1. This appointment makes Garg the first Indian national to lead the company since its establishment 29 years ago.

Garg succeeded Unsoo Kim, who is returning to a strategic role at Hyundai Motor Company in South Korea. The company's board had approved Garg's elevation in October as part of the firm's succession plan.

Market Performance and Outlook

"My vision is to build on our strong foundation while accelerating HMIL's transformation towards sustainable growth, technological leadership, and unmatched customer delight," Garg stated regarding his new role.

Shares of Hyundai Motor India were trading 1.90% lower at ₹2,270.70 on Friday. The stock has declined 21.00% from its post-listing high of ₹2,890.00, though it had gained 27.00% in the previous period. The export-led growth strategy continues to support overall performance despite domestic market challenges, with the strong international demand helping offset moderate local traction.

Hyundai Motor India Limited announced its December sales performance, reporting total monthly sales of 58,702 units with a 6.6% year-on-year growth from 55,078 units in the previous year. However, the sales figures fell short of analyst estimates of 63,030 units. The automaker demonstrated strong performance across both domestic and export segments, with particularly impressive export growth reinforcing its position in the global automotive market.

December Sales Performance vs Estimates

The company's December sales figures reflect a balanced growth strategy with significant contributions from both domestic and international markets, though falling below market expectations. The following table summarizes the key performance metrics:

Strong Export Performance Drives Growth

Hyundai Motor India's export segment delivered exceptional results in December, with 16,286 units exported, marking a robust 26.50% year-on-year growth. This outstanding performance aligns with the company's 'Made-in India, Made-for-the-World' strategy, demonstrating its commitment to manufacturing world-class products indigenously for global markets. The strong export numbers highlight the company's expanding international footprint and manufacturing excellence.

Product Portfolio Highlights

The all-new Hyundai VENUE has generated significant customer interest since its launch, with bookings already reaching the 55,000 mark within less than two months. This strong response indicates positive market reception and contributes to the company's overall sales momentum, supporting both domestic performance and brand strength.

Management Commentary

Tarun Garg, Managing Director & CEO of HMIL, attributed the positive performance to favorable market conditions and product appeal. He highlighted the impact of GST 2.0 reforms in driving the company's robust growth trajectory and emphasized the success of the export strategy in reinforcing Hyundai's global manufacturing capabilities.

Inventory Management

HMIL concluded calendar year with optimized network stock levels, ensuring healthy inventory management across its dealer network. This strategic approach supports sustainable business operations and efficient supply chain management for the upcoming periods.