As Hyundai Motor steps on the gas to reclaim lost ground in an increasingly competitive Indian automobile landscape, its journey mirrors the broader evolution of India Inc. in the post-pandemic era.
Once firmly India’s second-largest carmaker, Hyundai is now playing catch-up with agile rivals like Tata Motors and Mahindra & Mahindra. Sliding market share and soft sales of key models such as the Venue and Verna have triggered the need for a reset.
Since its October 2024 listing, Hyundai Motor India’s stock has rebounded from a weak debut to a July 2025 peak, briefly rising more than 15% above its IPO price of `1,960. Yet, with industry-wide momentum softening, Hyundai faces fresh pressure. In the latest April–June quarter, its passenger vehicle sales dropped by 12%, a sharper fall than sector leader Maruti’s 6% and Tata Motors’ 10%, while M&M and Kia logged gains.
As Astha Oriel explores in this issue’s cover story, the Korean carmaker is responding with ambition: 26 new models by 2030, a bold push into electric and hybrid vehicles, expanded capacity at its new Talegaon plant, and a sharpened export strategy. Yet challenges remain. Heavy reliance on the Creta, fierce competition, and slow electric vehicle adoption mean Hyundai’s long-term bets are shadowed by near-term risks.
This dynamic of challenges and opportunities plays out across sectors. As Rahul Oberoi reports in his review of FY25 financial results, corporate India ended FY25 with record net profits of `17 lakh crore, pushing the profit-to-GDP ratio to a 14-year high of 5.1%. However, top-line growth was subdued, and the private capex cycle lagged, with government-led spending doing the heavy lifting.
A similar pattern is playing out in Indian Railways’ electrification push. As Richa Sharma writes, notwithstanding rapid track electrification, a shortage of electric locomotives has disrupted services, grounding even iconic trains like the Deccan Queen. The problem has been compounded by the premature side-lining of diesel engines.
What connects Hyundai’s strategy, the cautious resilience of other companies, and the Indian Railways’ infrastructure strain is a common thread: the urgency to grow amid various constraints.
As time passes, easing inflation, supportive monetary policy, and recovering consumption could act as growth catalysts, but progress will hinge on strategic execution by steady hands at the wheel.
This edition also takes note of the troubles of private lender IndusInd Bank, which has cast a spotlight on its management practices, prompting serious questions about governance and board oversight. As Anand Adhikari notes, market confidence now hinges on meaningful management restructuring, particularly the appointment of a new CEO with strong risk management expertise. While the promoters have reaffirmed their long-term commitment, their true test lies in building a credible top management team and tightening governance.
