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Hyundai bets big on India after profits slip as SUV and EV push gathers pace
Carmaker plans fresh launches, a bigger Pune plant and Rs 7,500 crore in capex as it targets up to 10 per cent growth in FY27
GURUGRAM: Hyundai Motor India is stepping harder on the accelerator in India even as margins narrowed and profits dipped in FY26, with the South Korean carmaker unveiling an aggressive expansion plan built around SUVs, electric vehicles and a major capacity increase at its Pune factory.
The company on Friday reported consolidated revenue of Rs 70,763 crore for FY26, up 2.3 per cent from a year earlier, while net profit slipped 3.7 per cent to Rs 5,431 crore. EBITDA margin came in at 12.2 per cent against 12.9 per cent last year, reflecting a tougher operating environment despite stronger sales momentum in the final quarter.
The fourth quarter, however, showed signs of renewed traction. Revenue rose 5.4 per cent year-on-year to Rs 18,916 crore, while domestic wholesale volumes climbed 8.7 per cent, powered by what the company described as GST 2.0 tailwinds, stronger rural demand and sharper product interventions.
Hyundai said connected demand from smaller towns and villages continued to surge, with rural penetration touching a record 25 per cent in the March quarter. CNG models also gathered pace, accounting for 18 per cent of quarterly sales, the company’s highest-ever contribution from the fuel segment.
The company’s export business, long a bright spot for Hyundai in India, also remained resilient despite geopolitical volatility. Export volumes rose 9.4 per cent in the fourth quarter and 16.4 per cent for the full year, reinforcing India’s role as a manufacturing hub for emerging markets.
Tarun Garg, managing director and chief executive officer, said the company had navigated a difficult year while continuing to invest for growth.
“As we celebrate 30 years of operations in India, we take pride in building a strong foundation anchored in customer trust, innovation, and consistent execution,” he said. “FY26 was a year where we demonstrated our ability to effectively navigate a challenging environment while capitalising on emerging opportunities.”
Hyundai now plans to launch two completely new nameplates in FY27, including a new mid-sized SUV and a localised electric compact SUV, as it sharpens its focus on the country’s fastest-growing vehicle segments.
The company is also doubling down on manufacturing. Garg announced an additional 70,000 units of expansion at Hyundai’s Pune facility after Phase II, taking the company’s total installed capacity in India to 1.14 million units by 2030.
Hyundai expects domestic and export volumes to grow between 8 and 10 per cent in FY27 and has earmarked around Rs 7,500 crore in capital expenditure to support its expansion plans.
The board has also recommended a dividend of Rs 21 per share.
For Hyundai, the message is clear: India is no longer just a market to defend. It is the growth engine the company is now building around.
