Hyundai Motor India (HMIL) has set a target of achieving 8-10% volume growth in the domestic market this fiscal (FY27) on the back of new product launches and network expansion. The Korean auto major will launch two new nameplates this fiscal year, which include one localised dedicated electric vehicle (EV) in the compact SUV space and one internal combustion engine (ICE) SUV in the heavily crowded mid-size segment.
To support the growth and expansion, HMIL announced capital expenditure of Rs 7,500 crore in FY27, its highest outlay in recent years. Hyundai also announced the expansion of its Pune facility by another 70,000 units post Phase-II expansion in 2028, taking its overall capacity to 1.14 million units by 2030.
“Both these launches are expected to meaningfully boost our volumes and act as a powerful catalyst for our next phase of growth…Notably, both these launches are positioned in high-demand segments aimed at broadening our portfolio and deepening our presence,” Tarun Garg, Managing Director & Chief Executive Officer said while announcing HMIL’s Q4FY26 and FY26 financial results.
Hyundai on Friday reported 22.22% decline in its consolidated net profit at Rs 1,255.6 crore for the fourth quarter (Q4FY26) ended March as compared to Rs 1,614.3 crore profit in the same period last fiscal. The company attributed the decline in PAT primarily to higher commodities prices. However, consolidated revenue grew by 5.4% year-on-year to Rs 18,916.2 crore in Q4FY26.
For the full financial year FY26, HMIL’s PAT fell 3.7% Y-o-Y to Rs 5,431.5 crore while revenue grew by 2.2% to Rs 70,763.3 crore. HMIL reported a decline of 2.3% in its domestic sales to 584,906 units in FY26 as compared with 598,666 units in FY25. However, sales in Q4 saw a spike and the brand achieved its highest-ever quarterly domestic sales of 166,578 units, up 8.5% Y-o-Y.
“We have begun the new financial year with a solid performance in April with domestic volumes growth of 17% year-on-year. As we move forward, we are well positioned to capitalise on the supportive demand environment while strategically unlocking the incremental opportunities arising from upcoming product launches,” said Garg.
HMIL is confident of delivering EBITDA margins within a guided range of 11-14% in FY27 and would go for a price hike across the portfolio in May 2026.
Garg added that even in an extremely uncertain environment, export volume for them will grow by 8-10% in FY27. The company's exports grew 9.4% Y-o-Y in Q4FY26 to 41,697 units and for the full FY26, exports surged 16.4% Y-o-Y to 190,125 units.
The aggressive expansion plan by HMIL comes as competition in the Indian car market, especially in the SUV segment, has intensified in recent years. Home-grown rivals such as Tata Motors and Mahindra & Mahindra are expected to launch a fresh wave of SUVs while Maruti Suzuki is going with aggressive expansion plan to regain 50% share in the domestic market.