Hyundai Motor India Q3 net slips 19%

Hyundai Motor India Ltd. reports 19% drop in Q3 net profit, focuses on EV growth and product diversification.

India’s second largest automobile producer Hyundai Motor India Ltd. (HMIL) on Tuesday reported a 19% slippage in its consolidated net profit during the third quarter (Q3) ended December 31, 2024, citing lower margins that were largely driven by subdued demand and geo-political factors.

HMIL’s net profit stood at ₹1,160.7 crore in Q3, down from ₹1,425.2 crore in the same quarter of 2023-24, while revenue from operations dipped a marginal 1.34% to ₹16,648 crore, from ₹16,875 crore over the same period.

“While the challenges persist in the overall market due to global factors, our business fundamentals remain strong, and we remain confident in our ability to leverage our strengths and actively explore potential opportunities to improve our volumes and profitability,” HMIL managing director Unsoo Kim said.

The company sold a total of 1,86,408 units of passenger vehicles, including 1,46,022 units in the domestic market with a strong contribution from the SUV segment. During the same quarter of last year, HMIL had sold a total of 1,90,979 units, including 1,47,329 units that were sold in the domestic market.

In a sign that rural demand is holding up while urban demand remains tepid, HMIL’s rural penetration reached 21.2% compared with 19.7% a year ago. Export volumes stood at 40,386 units during Q3. Hyundai also achieved its highest-ever CNG penetration during the quarter, reaching 15% from 12% in the year ago period.

With a positive outlook on growing electric vehicle (EV) penetration in India, the firm said it expects its recently launched Creta Electric to drive growth and reckoned it will be a ‘game-changer’ in the country’s EV landscape. The company is building a strong EV ecosystem in India through localisation, charging infrastructure and expects to have a robust pipeline with three more EVs planned in due time. Aligned with its capacity expansion plans from Pune plant, the company would also be focusing on diversifying its product portfolio, and would also look to explore opportunities in alternate eco-friendly powertrains.

“With access to HMC’s global powertrain technologies like hybrids, hydrogen, flex fuel, the company believes it is well placed to adapt to any change in demand dynamics and regulatory environment,” it said in a statement.