Hyundai Motor India Eyes Export Growth, Localisation Push Amid Modest FY26 Outlook

Hyundai Motor India Ltd (HMIL) is planning for modest domestic growth and stronger export volumes in FY2025–26, even as it navigates macroeconomic headwinds and a high sales base. The South Korean carmaker is doubling down on localisation, manufacturing expansion, and premium positioning as part of its medium-term strategy.

In his address to shareholders in the company’s annual report, Managing Director Unsoo Kim projected low single-digit growth in domestic sales for the year, along with a 7–8% increase in exports, buoyed by sustained demand in emerging markets.

“India’s economic resilience, coupled with forward-looking policies like repo rate cuts and tax reliefs, will help revive demand in the auto sector,” Kim said, adding that Hyundai remains focused on quality-led expansion.

Kim acknowledged the prevailing “economic uncertainty” but said supportive policy signals—such as repo rate cuts and potential tax reliefs—could help revive demand. “Hyundai remains committed to quality-led growth with a strong focus on Make in India,” he said.

FY25 sales driven by SUVs

For the financial year ended March 2025, HMIL reported total sales of 7.62 lakh units, comprising 5.98 lakh units sold domestically and 1.63 lakh units exported. SUVs dominated the company’s portfolio, accounting for 69% of domestic sales, led by the Creta, which continues to top the mid-size SUV segment with over 30% market share. The launch of Creta Electric added further depth to Hyundai’s EV lineup.

Export milestone and IPO highlights

HMIL also marked 25 years of passenger vehicle exports from India, retaining its position as the country's largest cumulative car exporter.The year also saw Hyundai achieve a landmark IPO—described as the biggest in India’s automotive sector—which led to its inclusion in the MSCI Global Index, NIFTY Next 50, and BSE 500.

Talegaon Facility going on stream

Hyundai’s expansion plans include ramping up production at its Talegaon facility in Maharashtra, acquired from General Motors. Engine manufacturing has begun, and vehicle production is slated to start in Q3 FY26, with an initial capacity of 1.74 lakh units, expandable to 2.5 lakh. 

Combined with its Chennai facility, the company aims to produce over 1 million vehicles annually by the end of the decade.

Localisation and premium strategy

To boost cost-efficiency and supply chain resilience, Hyundai is working closely with local suppliers to indigenise key components. Meanwhile, the company is also evaluating the launch of its global luxury brand Genesis in India, which would position it against Mercedes-Benz, BMW, and Audi.

“The Genesis brand aligns with our vision of delivering innovation, design, and differentiated experiences to India’s growing base of luxury consumers,” said Tarun Garg, Whole-time Director and COO. He further said, "This aligns with our aspiration to serve the evolving expectations of discerning Indian consumers. 

Also Read: Hyundai to Launch Luxury Brand Genesis in India, Plans 26 Models by 2030 | Republic World

A team led by Anuraag Singh is currently assessing market entry strategy for Genesis, reflecting Hyundai’s broader pivot from entry-level models to premium and feature-rich offerings.

Roadmap to 2030

Hyundai plans to launch 26 new models by FY2030, including six EVs, 20 internal combustion engine (ICE) vehicles, and products with hybrid powertrains. The strategy, the company says, is aimed at offering a broader range of propulsion technologies and price points to Indian consumers.