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Driven by strong performance in exports and rural sales, Hyundai Motor India (HMIL) reported a 14 per cent increase in profit after tax, and said it expected to surpass its export targets for the year. The company, which is the second-largest automobile exporter, reported net profit of ₹1,572 crore and a 1 per cent increase in revenue from operations in Q2 FY26 at ₹17,460 crore. The bottomline was aided by rise in other income and drop in raw material prices. The EBITDA margin, at 13.9 per cent, was up 113 bps year on year, driven by favourable product and export mix and cost optimisation efforts. The company stated it registered the highest-ever domestic SUV contribution at 71.1 per cent during the quarter. Hyundai India reported its highest-ever rural contribution at 23.6 per cent. While rural markets reported steady growth, urban markets are still under pressure, it said, adding that it anticipates demand increase with the GST reforms implementation. In the near term, the company aims to keep pace with the industry’s growth momentum for the residual part of the year, while its strong export performance is set to surpass targets for FY26. Exports accounted for 27 per cent of total sales in the quarter. “Following the implementation of GST 2.0 reforms, the Indian automobile industry witnessed a strong wave of demand momentum. This led to a positive shift in consumer sentiments, coupled with improved affordability, which translated into a remarkable surge in sales in the last week of the quarter, partially offsetting the muted demand amid the postponement of buying by the customers. Our focused efforts in terms of channel expansion and deeper market penetration, along with targeted marketing initiatives are yielding positive outcomes, with rural sales contribution further inched up during the quarter, reaching a record high of nearly 24 per cent,” said Unsoo Kim, Managing Director, Hyundai Motor India, in a media call. Exports grow The company stated that it witnessed an uptick in exports from its key markets with a 22 per cent year-on-year growth. “We are witnessing strong demand traction in our key export markets, with West Asia and Africa recording a remarkable volume growth of 35 per cent and Mexico recording a growth of 11 per cent. Going forward, we expect to leverage our new plant capacity and new product launches to sustain this growth momentum,” he added. Hyundai Motor India is anticipating an increase in commodity prices in Q3 FY26. Upgrades increase Hyundai Motor India noted that with the implementation of GST reforms, the company has seen an increase in consumer upgradation to larger segments. “The prices of small vehicles reduced 8.5 per cent and larger vehicles nearly 3.5 per cent. We are witnessing more traction coming from consumers wanting to upgrade. We are also excited for the new Hyundai VENUE launch and expect traction to increase significantly,” said Tarun Garg, Whole-time Director & COO. Published on October 30, 2025
