Hyundai Motor, a leading player in India’s automotive sector, recorded a 19% drop in net profit, reporting 11.61 billion rupees (approximately $134 million) for the third quarter. This decline was driven by a 2.4% drop in overall sales, with domestic sales dipping 0.1% and exports sliding 7.5%. As a result, revenue fell 1.3%.
Despite its strong presence in India, Hyundai Motor holds a 14% market share, trailing behind Maruti Suzuki (MRTI.NS), which dominates with 40% of the market. India remains a crucial market for Hyundai Motor globally, but the company is now facing headwinds due to increasing competition and a slowdown in the broader auto industry.
According to Reuters, the Indian automotive industry has seen sluggish growth in 2024, with total car sales increasing by just 1.8% between April and December, a stark contrast to the 7.4% growth recorded during the same period last year. Hyundai Motor India’s Chief Operating Officer, Tarun Garg, predicts low-single-digit growth in domestic car sales will continue into 2025-26.
Currently, Hyundai Motor India exports around one-fourth of its total vehicle production, shipping cars to the Middle East, South Africa, and parts of Latin America. The automaker remains committed to strengthening its global presence while sustaining its position as a leading carmaker in India.
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