Hyundai Motor India Banks on GST Reforms, Export Growth and New Launches to Fuel FY26 Momentum

Hyundai Motor India is riding a wave of renewed optimism as policy reforms, rising rural demand, and strong export momentum position the automaker for its next phase of growth. Even as domestic sales softened in the September quarter, the company says it is on course to surpass its FY26 export targets, reinforcing its plan to make India a global production and export hub.

“Our strong export performance is set to surpass FY26 targets,” said Unsoo Kim, Managing Director of Hyundai Motor India. The company shipped 51,400 units in the quarter ended September 2025 — a 21.5% increase year-on-year — with the Middle East and Africa growing 35% and Mexico up 11%. Hyundai aims to dedicate 30% of its India output for exports by 2030, supported by expanding capacity at its upcoming Pune plant.

At home, Hyundai sees a turnaround brewing after the rollout of GST 2.0, which has rationalized taxes across vehicle categories. Smaller cars (under four metres) now fall under the 18% slab, while the compensation cess has been removed — a move that has boosted affordability and revived consumer sentiment.

Also Read: Hyundai India Q2 FY26 Profit Rises 14% YoY to ₹1,572 Crore; Exports and SUVs Drive Growth | Republic World

“The GST 2.0 reforms, combined with income tax cuts, lower interest rates and the upcoming 8th Pay Commission, have arrived at the most opportune time,” Kim noted. “They coincide with our new product cycle and expansion initiatives.”

The company plans to launch the next-generation Venue compact SUV on November 4, a model that has already sold over 7 lakh units since its debut in 2019. Hyundai believes the refreshed Venue will strengthen its leadership in the compact SUV segment, which is the largest in India’s passenger vehicle market.

Incoming MD and CEO Tarun Garg, who takes charge in January 2026, said Hyundai is witnessing improving rural demand, supported by tax reforms and better affordability. He added that the automaker continues to maintain its “quality of sales” without resorting to heavy discounting, even during the GST transition phase.

On the financial front, Hyundai Motor India reported a 14.3% rise in consolidated net profit to Rs 1,572 crore for Q2 FY26, with total income inching up to Rs 17,692 crore. SUVs made up 71% of total volumes, the highest-ever quarterly share for the company. Cost-saving initiatives and higher export margins helped offset expenses related to the Pune plant.

“We are leveraging GST-driven optimism, new launches and export momentum to sustain growth through FY26,” Kim said.