Hyundai Motor India banks on rural demand, festive season to drive growth
The company is also anticipating a boost in sales with the upcoming festive season.
- Jul 30, 2025,
- Updated Jul 30, 2025 5:17 PM IST
South Korean automaker Hyundai Motor India is banking on rural demand and the upcoming festive season to drive growth, despite witnessing an 8% year-on-year decline to Rs 1,362.60 crore in the April-June quarter of FY26. In contrast, the company’s consolidated profit stood at Rs 1,483.05 crore in the first quarter of FY25. For the April to June quarter, the rural contribution in Hyundai’s portfolio stood at its highest-ever at 22.6% as against 19.9% in Q1 of FY25. In June, the rural contribution stood at 22.9%. According to Tarun Garg, whole-time director & COO, the rural demand was aided by good monsoon, MSP, and infrastructure. Meanwhile, the company is also anticipating a boost in sales with the upcoming festive season. “We anticipate gradual recovery in domestic demand sentiments, driven by the 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,” says Unsoo Kim, Managing Director, Hyundai Motor India. The company’s revenue from operations fell 5% to Rs 1,641.3 crore. Meanwhile, the company’s SUV contribution during the quarter under review stood at 69%, whereas hatchback and sedan contributions stood at 18% and 13%, respectively. The company’s total volumes slipped 6% to 180,399 units during the quarter under review, with domestic sales slipping by 11.5% to 1.32 lakh units. During the quarter under review, the company also began engine production at the Pune plant. As per the company’s management, Hyundai Motor India is targeting one lakh units of engine production capacity, which will cater to both the Pune and Chennai plants. Going ahead, the company sees a discount level of 3.4%.
South Korean automaker Hyundai Motor India is banking on rural demand and the upcoming festive season to drive growth, despite witnessing an 8% year-on-year decline to Rs 1,362.60 crore in the April-June quarter of FY26. In contrast, the company’s consolidated profit stood at Rs 1,483.05 crore in the first quarter of FY25. For the April to June quarter, the rural contribution in Hyundai’s portfolio stood at its highest-ever at 22.6% as against 19.9% in Q1 of FY25. In June, the rural contribution stood at 22.9%. According to Tarun Garg, whole-time director & COO, the rural demand was aided by good monsoon, MSP, and infrastructure. Meanwhile, the company is also anticipating a boost in sales with the upcoming festive season. “We anticipate gradual recovery in domestic demand sentiments, driven by the 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,” says Unsoo Kim, Managing Director, Hyundai Motor India. The company’s revenue from operations fell 5% to Rs 1,641.3 crore. Meanwhile, the company’s SUV contribution during the quarter under review stood at 69%, whereas hatchback and sedan contributions stood at 18% and 13%, respectively. The company’s total volumes slipped 6% to 180,399 units during the quarter under review, with domestic sales slipping by 11.5% to 1.32 lakh units. During the quarter under review, the company also began engine production at the Pune plant. As per the company’s management, Hyundai Motor India is targeting one lakh units of engine production capacity, which will cater to both the Pune and Chennai plants. Going ahead, the company sees a discount level of 3.4%.