Hyundai Motor India has reported a robust performance in the first quarter, showcasing significant growth in exports and a strong presence in the rural market. The company's financial results for Q1 reveal a solid foundation for continued success in the Indian automotive sector.

Export Surge and Rural Market Dominance

Hyundai Motor India witnessed a remarkable 28% increase in exports to Africa during the first quarter, underlining the company's growing international presence. This surge in exports aligns with the company's strategy of balancing domestic and international markets, as highlighted in their recent financial report.

In the domestic market, Hyundai's SUVs have shown impressive traction, accounting for 68% of sales in rural areas. This dominance in the rural SUV segment demonstrates the company's strong product positioning and understanding of diverse market needs across India.

Financial Highlights

According to the unaudited consolidated financial results for Q1:

Despite a slight decrease in revenue and profit after tax (PAT) compared to the same quarter last year, Hyundai Motor India maintained a strong EBITDA margin of 13.30%, showcasing the company's operational efficiency.

Market Dynamics and Future Outlook

A company executive indicated that discounts might decrease soon, suggesting confidence in the demand for Hyundai vehicles. This potential reduction in discounts could positively impact the company's profit margins in the coming quarters.

Addressing concerns about global supply chain issues, the executive confirmed that rare earth export limits are not causing problems for Hyundai. The company reported having sufficient inventory available for immediate needs, ensuring uninterrupted production and sales.

Strategic Initiatives

Hyundai Motor India has recently commenced engine production at its Pune manufacturing facility. This strategic scale-up, mentioned in the company's financial report, is expected to enhance the company's production capabilities and support its growth objectives.

Conclusion

Hyundai Motor India's performance in Q1 demonstrates the company's resilience and strategic focus on balanced growth between domestic and export markets. With strong rural market penetration, robust export growth, and ongoing investments in manufacturing capabilities, Hyundai is well-positioned to navigate the competitive automotive landscape in India and beyond.

As the company moves forward, it anticipates a gradual recovery in domestic demand, driven by the onset of the monsoon season, upcoming festive periods, and supportive government policies. These factors, combined with Hyundai's strong product lineup and market strategies, paint a promising picture for the company's future performance in the Indian automotive sector.

Hyundai Motor India Limited (HMIL), one of the country's leading automobile manufacturers, has released its financial results for the first quarter, showcasing resilience in a challenging market environment.

Financial Performance

For the quarter, Hyundai Motor India reported:

Despite a challenging macro-economic environment, Hyundai maintained a strong EBITDA margin of 13.3% during the quarter. The company's revenue stood at ₹16,413.00 crore, compared to ₹17,344.00 crore in the same quarter last year, marking a 5.4% decrease.

Sales Performance

Hyundai's total sales for the quarter reached 180,399 units, showing a 6.1% decrease compared to the same period last year. The breakdown of sales is as follows:

• Domestic sales: 132,259 units (11.5% YoY decrease)
• Exports: 48,140 units (13.0% YoY increase)

The company witnessed accelerated growth in exports, with volumes up by 13% year-on-year, while domestic growth remained subdued amid macro challenges.

Product Highlights

• CRETA maintained its leadership position in the SUV segment.
• The i10 brand surpassed 3 million cumulative sales in domestic and export markets.
• Hyundai's rural thrust increased, with rural contribution rising to 22.6%.
• CNG vehicle contribution enhanced to 15.6%, boosted by the introduction of dual-cylinder technology and new variants.

Strategic Developments

Hyundai recently commenced engine production at its Pune manufacturing facility, marking a significant step in its "Make in India, Made for the World" initiative.

Market Outlook

Mr. Unsoo Kim, Managing Director of Hyundai Motor India, commented on the results, stating, "We continued our stated strategy of 'Quality of Growth' in the first quarter with balance between domestic & exports, market share and profitability. This strategy helped us to sustain strong EBITDA margin of 13.3% during the quarter, despite tough macro-economic environment."

Looking ahead, Mr. Kim added, "We anticipate gradual recovery in domestic demand sentiments, driven by onset of monsoon & festive season coupled with government policy measures, while on the exports front, we are confident to maintain a positive momentum, in line with our growth commitments."

The company's cautious optimism aligns with the broader industry expectation of a slow improvement in local demand conditions, suggesting a measured recovery trajectory for the domestic market in the coming quarters.

As Hyundai navigates through these challenging times, its focus on balanced growth between domestic and export markets, coupled with strategic product launches and technology innovations, is expected to play a crucial role in maintaining its strong position in the Indian automotive sector.