Hyundai Motor India Eyes 8–10% Growth in FY27, Expects Margin Recovery

Hyundai Motor India Limited has outlined an optimistic outlook for FY27, projecting steady growth in sales and exports while aiming for improved profitability driven by new launches and operational efficiencies.

Hyundai Sets Growth and Profitability Targets for FY27

Hyundai Motor India Limited (HMIL) has announced its strategic guidance for FY27, targeting an 8–10% increase in both domestic and export volumes. The company also expects a recovery in profitability, supported by a stronger product pipeline, improved operating leverage, and a favourable export mix.

The projections were shared as part of the company’s investor presentation following its Q4 FY26 earnings, offering insights into Hyundai’s roadmap amid evolving market dynamics.

EBITDA Margins Expected to Improve

A key highlight of Hyundai’s guidance is its expectation of EBITDA margins in the range of 11–14% for FY27. This indicates a likely improvement from current levels, despite persistent cost pressures such as rising commodity prices and operational expenses.

The company believes that scale benefits, cost optimization strategies, and a better product mix will help offset these challenges and support margin expansion over the coming fiscal year.

Mixed Performance in FY26

Hyundai’s FY26 performance presented a mixed picture, reflecting both strengths and challenges in different segments.

The automaker reported total sales of 775,031 units, marking a modest 1.7% year-on-year growth. This growth was largely driven by strong export performance, which increased by 16.4% to 190,125 units.

However, domestic sales declined by 2.3% to 584,906 units, highlighting subdued demand in the Indian passenger vehicle market during parts of the fiscal year.

Exports Play a Crucial Role

Exports emerged as a key growth driver for Hyundai Motor India Limited in FY26. The company’s strong presence in global markets helped offset the slowdown in domestic demand.

An improved export mix is expected to remain a major contributor to Hyundai’s performance in FY27, as the company continues to leverage its manufacturing capabilities in India as a global hub.

Demand Recovery in Second Half Supports Volumes

Hyundai noted that demand conditions improved during the second half of FY26. This recovery was partly supported by GST reductions in select vehicle categories, which helped stimulate consumer interest and boost sales volumes.

The company expects this momentum to continue into FY27, aided by new product introductions and improving macroeconomic conditions.

New Product Launches to Drive Growth

As competition intensifies, especially in the SUV and electric vehicle segments, Hyundai is gearing up for an aggressive product strategy.

The company plans to introduce two new nameplates in FY27:

• A new internal combustion engine (ICE) SUV
• A new electric SUV

These launches are expected to strengthen Hyundai’s position in the fast-growing utility vehicle segment, which continues to dominate the Indian passenger vehicle market.

SUV Segment Remains the Backbone

SUVs continue to be a major growth driver for Hyundai. In FY26, utility vehicles accounted for 68% of the company’s domestic sales mix. Popular models such as the Hyundai Creta, Hyundai Venue, and Hyundai Exter played a significant role in maintaining strong market presence.

Among these, the Hyundai Creta remained one of the top-selling models, reinforcing its position as a flagship offering in Hyundai’s portfolio.

Expanding Presence in Rural Markets

Hyundai is also witnessing increased traction in rural markets, which are becoming an important growth avenue.

The company reported that rural penetration reached a record 25% in Q4 FY26. This indicates rising demand for passenger vehicles in non-urban regions, driven by improving incomes and infrastructure development.

Hyundai aims to further strengthen its rural footprint through targeted marketing strategies and product offerings suited to these markets.

Growth in Alternative Fuel Vehicles

Another notable trend is the growing adoption of alternative fuel vehicles. Hyundai reported that CNG-powered vehicles contributed 18% to its overall sales mix in FY26. This reflects increasing consumer preference for cost-effective and environmentally friendly mobility solutions, especially amid fluctuating fuel prices.

The company is expected to continue expanding its alternative fuel portfolio to cater to this rising demand.

Financial Performance Overview

In terms of financials, Hyundai Motor India Limited reported revenue of ₹70,763 crore in FY26, representing a 2.3% year-on-year increase.

However, EBITDA margins declined to 12.2% from 12.9% in the previous year. This contraction was attributed to factors such as commodity inflation and costs associated with capacity stabilization.

Despite these challenges, the company remains confident of reversing the trend in FY27 through strategic initiatives and improved efficiencies.

Outlook for FY27

Looking ahead, Hyundai’s outlook for FY27 reflects cautious optimism. The company is focusing on:

• Strengthening its product portfolio
• Expanding exports
• Enhancing operational efficiency
• Capitalizing on SUV and EV demand

With these strategies in place, Hyundai Motor India Limited aims to achieve sustainable growth while improving profitability.

Conclusion

Hyundai’s FY27 guidance underscores its commitment to growth and resilience in a competitive automotive landscape. By leveraging exports, launching new products, and focusing on high-demand segments like SUVs and EVs, the company is positioning itself for the next phase of expansion.

While challenges such as cost pressures remain, Hyundai’s strategic approach and market adaptability are expected to drive improved performance in the coming year.