Exports offer reprieve to Hyundai Motor India as domestic sales log a double-digit decline

Exports of Hyundai Motor India jumped 13% to 48,140 units in the first quarter of FY26, the carmaker said on Wednesday, as domestic sales continue to be a laggard, with a 11.5% decline from the year-ago period to 1,32,259 units, and a sequential decrease of 13.9%. The total sales declined by 6.1% year-on-year to 1,80,399 units.

That translated to a 5.4% year-on-year—and an 8.5% sequential—decline in its quarterly revenue of ₹16,412.90 crore. Its net profit in the first quarter slid 8.1% year-on-year—a 15.2% sequential decline—to ₹1,369.23 crore. “Softening demand continues to weigh on domestic sales,” said Unsoo Kim, MD, Hyundai Motor India Limited. India’s biggest carmakers, including bellwether Maruti Suzuki India Limited, are redoubling their production capacities towards exports, as the sentiment in the domestic market remains subdued.

The SUV market—once a stronghold for Hyundai in India, which includes the Creta, its runaway success model—declined 10.1% year-over-year and 14.8% decline sequentially. While Creta contributes 36% has raised concerns of sales volume being skewed towards a single model, Tarun Garg, COO, Hyundai Motor India, has dispelled these concerns by claiming that there is a healthy distribution of sales across all its models. “Venue contributes 17% to our sales, Exter contributes 13%, and Aura contributes 11.2%. I don’t think there is any over-reliance on one model,” he said.

However, Hyundai Motor India also said that it has found better traction in the rural markets, with its contribution increasing to 22.6% of its quarterly sales in the quarter ended June 30, a record contribution for the company. COO Garg attributed the record contribution to a healthy monsoon and robust MSP payouts, which spurted agricultural activity in the country. It also saw a healthy contribution of CNG vehicles to 15.6%, a positive rub-off from the introduction of the dual-cylinder technology, and newer variants with more features.

Looking ahead, the management has expressed optimism that the forthcoming festive season is expected to drive sales in the second half of the year. The demand is also likely to improve with the repo rate cut by 100 basis points, which, according to Hyundai Motor India, has yet to be passed on to consumers by the banks. 44% of the sales of the carmaker come from the salaried class, so the repo rate will incentivise more people to buy vehicles.

Shares of Hyundai Motor India Limited closed 0.84% lower on Wednesday at ₹2,083.10.