Hyundai Motor India Navigates Challenges with Robust SUV Demand and Strategic Cost Management

Despite facing market challenges post-IPO, Hyundai Motor India reported a slight dip in revenue, offset by strong domestic SUV sales and strategic cost management. The upcoming CRETA EV launch is anticipated to further strengthen its position in the EV market, as stated by Managing Director Unsoo Kim.

In its maiden financial report following the Initial Public Offering, Hyundai Motor India has disclosed a consolidated operational revenue of Rs 3,46,046.18 million for the first half of the fiscal year 2024-25. This marks a 1.92% decrease from Rs 3,52,832.02 million recorded in the same period the previous year. Despite the downturn, the company's EBITDA margin improved to 13.14% from 12.58%, attributed to effective cost management and strong domestic demand, particularly within its SUV segment.

The company reported sales of 3,83,994 passenger vehicles in the first half, comprising 2,99,094 units sold domestically and 84,900 units exported. Domestic sales were bolstered by high SUV demand. Profit before tax dipped to INR 38,532.29 million from Rs 40,205.15 million in H1 FY 2023-24, while net profit stood at Rs 28,651.21 million, down from Rs 29,576.50 million.

During the July-September quarter, Hyundai Motor India reported revenues of Rs 1,72,603.84 million, a 7.50% reduction from the previous year's Rs 1,86,596.91 million. The company sold 1,91,939 passenger vehicles in this quarter, with domestic sales of 1,49,639 units and exports of 42,300 units. The EBITDA margin contracted to 12.78% from 13.08% in the prior year's quarter, with profit before tax at Rs 18,498.46 million compared to Rs 22,320.36 million. The net profit was Rs 13,754.69 million for the quarter.

Unsoo Kim, Managing Director of Hyundai Motor India, expressed optimism despite challenging market conditions, citing strategic cost-control measures as crucial for maintaining profitability. He announced the forthcoming launch of the CRETA EV, which he believes will be a significant force in the electric vehicle market.

(With inputs from agencies.)