Expecting low-single digit domestic growth, up to 8% export surge in FY26: Hyundai MD Unsoo Kim

Hyundai will start vehicle production at its Talegaon plant in Q3 FY26.

Hyundai Motor India Ltd (HMIL) is expecting its domestic volumes to witness a low-single digit growth, in line with industry estimates, while eyeing an increase of 7-8% year-on-year (y-o-y) in exports, according to the company's Managing Director Unsoo Kim.

In the domestic market, the carmaker currently offers hatchbacks like Grand i10 Nios and i20; sedans like Aura and Verna; SUVs like Exter, Venue, Creta, Alcazar and Tucson; and electric vehicles (EVs) like Creta Electric and Ioniq 5. It exports most of these models.

Although the company's domestic volumes fell 2.6% y-o-y at 5,98,666 units in FY25, its exports remained flat at 1,63,386 units.

"While we expect our FY26 domestic growth to be broadly in line with industry estimates of low-single digit, we anticipate 7-8% volume growth in exports, supported by robust demand for our products in the emerging markets," Kim told shareholders in Hyundai's FY25 Annual Report.

"In FY25, HMIL recorded its highest-ever domestic SUV contribution, with SUVs comprising 69% of total sales, driven by strong demand across urban and rural markets. Brand Creta maintained its undisputed leadership in the mid-size SUV segment, securing over 30% market share, while enhancing its appeal with the Hyundai Creta Electric," he said.

The Creta was the third largest-selling passenger vehicle (PV) and the second best-selling SUV in India in FY25 at 1,94,871 units.

"Through agile and strategic decision-making, HMIL successfully sustained export volumes, reaffirming its position as India's largest cumulative exporter of PVs and celebrating a major milestone of 25 years of exports from India," Kim observed.

According to Kim, global disruptions, macroeconomic uncertainties, and a high base effect continue to pose challenges across the automotive industry. The Indian PV segment recorded its highest-ever annual domestic volumes at 43,01,848 units in FY25, as per official data from the industry body Society of Indian Automobile Manufacturers (SIAM).

"Yet, India's economic resilience and forward-looking policies, including repo rate cuts and income tax relief, are now creating a more favourable landscape for consumption-driven sectors like ours. We expect these steps to support automotive demand recovery in the near to mid-term, particularly as financing becomes more accessible and customer confidence improves," Kim said.

Hyundai is aiming to launch 26 new models and upgrades, including six EVs and 20 internal combustion engine (ICE) models, by FY30. The company will also introduce hybrids in the Indian market. The company's diverse portfolio will feature new models, full-model upgrades, and product enhancements.

In June, the company officially started engine production at its Talegaon plant, which it acquired from General Motors. The facility has an annual installed capacity of 1,50,000 engines.

The production of vehicles at the Talegaon plant will commence in the third quarter of this fiscal. The first phase will see an annual capacity of 1,74,000 units. In the second phase, the capacity will be enhanced to 2,50,000 units per year.

Hyundai's Chennai plant currently has an annual installed production capacity of 8,24,000 units. Following the completion of the second phase at the Talegaon plant, the company's capacity will reach 10,74,000 units per annum.

"We recently commenced production of PV engines at our manufacturing facility in Pune, bringing us closer to commencing vehicle production by Q3 of FY26. With the goal of producing over 10,00,000 units annually, this state-of-the-art facility will enhance manufacturing capacity, enable seamless integration between EV and ICE production, and play a crucial role in advancing our sustainability objectives," Kim said.