Hyundai Motor India , a leading automobile manufacturer, has reported mixed results for its September sales, with domestic growth remaining muted while exports showed significant improvement. Additionally, the company has commenced production at its new plant in Talegaon, Maharashtra.

Domestic Sales Performance

Hyundai Motor India's domestic sales reached 51,547 units in September, representing a marginal 1.00% increase compared to the same period last year. This modest growth in the domestic market led to a 3.00% decline in the company's share price, which fell to Rs 2,507.00.

Export Growth

Despite the subdued domestic performance, Hyundai's exports surged by 43.50%, with nearly 19,000 vehicles shipped overseas. This strong export performance helped offset the sluggish domestic sales growth.

Product Mix and Segment Performance

SUVs continued to dominate Hyundai's sales mix, accounting for over 37,000 units and achieving a record 72.40% penetration in domestic sales. The Hyundai Venue, in particular, recorded its highest monthly sales in 20 months, with 11,484 units sold.

Impact of GST Changes

InCred Equities noted that recent GST cuts are expected to have a limited impact on Hyundai's revenue growth. This is primarily due to the company's high dependence on large SUVs, exports, and parts. The brokerage highlighted that only 30.00% of Hyundai's net sales are from products affected by the new 18.00% GST rate, which limits the benefits compared to competitors like Maruti Suzuki and Tata Motors.

Financial Performance

Hyundai reported a decline in its quarterly consolidated financial results. Net profit decreased by 8.00% to Rs 1,369.23 crore, while revenue dropped by 5.50% to Rs 16,179.61 crore.

New Talegaon Plant

Hyundai Motor India Limited has commenced production of passenger vehicles at its new Talegaon Plant in Maharashtra. The manufacturing facility is located at Plot No. A-16, MIDC, Talegaon Industrial Area, Phase-II Expansion, Tehsil-Maval, Dist. Pune. The plant boasts an annual installed capacity of 170,000 units.

Conclusion

While Hyundai Motor India's September sales show mixed results with muted domestic growth and strong export performance, the company continues to maintain a strong position in the SUV segment. The impact of recent GST changes and the company's financial performance will be closely watched by investors and industry analysts. Furthermore, the commencement of production at the new Talegaon plant signifies Hyundai's commitment to expanding its manufacturing capabilities in India, potentially boosting its production capacity and market presence in the future.

Hyundai Motor India 's stock has experienced a remarkable surge, reaching a record high of Rs 2,890.00 on September 22. This represents an impressive increase of nearly 90% from its 52-week low of Rs 1,541.00, recorded on April 7. The stellar performance can be attributed to two key factors: the government's GST 2.0 reforms and robust festive season demand.

Record-Breaking Sales

The festive season has kicked off on a high note for Hyundai Motor India. On the first day of Navratri, the company reported approximately 11,000 dealer billings, marking its highest single-day tally in five years. This strong start to the festive season underscores the growing consumer confidence and the company's strong market position.

GST Reforms Boost

The implementation of GST 2.0 reforms has played a significant role in Hyundai's recent stock rally. Since the announcement of these reforms, Hyundai shares have gained over 21%, reflecting investor optimism about the potential benefits for the automotive sector.

Ambitious Growth Projections

Nomura, a leading financial services group, has released bullish projections for Hyundai Motor India:

• By 2030, India is expected to account for 15% of Hyundai's global target of 5.5 million units.
• Domestic sales are forecasted to reach 8.3 lakh units by 2030, a 40% increase from the projected 6 lakh units in 2025.
• Total volumes, including exports, are anticipated to grow from 7.8 lakh units in 2025 to 1.2 million units by 2030.

Capacity Expansion

To support its growth trajectory, Hyundai Motor India is expanding its production capacity. The company is setting up a new facility in Pune, which is expected to add 2.5 lakh units to its annual production capacity.

Analyst Outlook

Financial analysts maintain a positive outlook on Hyundai Motor India:

• Nomura forecasts a 27% EPS CAGR over FY26-28 and maintains a 'Buy' rating on the stock.
• Motilal Oswal projects an 8% annual volume growth over FY25-27 and expects a 10% earnings CAGR.

The recent stock performance and positive analyst projections highlight Hyundai Motor India's strong market position and growth potential in the coming years. As the automotive industry continues to evolve with policy reforms and changing consumer preferences, Hyundai appears well-positioned to capitalize on these opportunities in the Indian market.