HYUNDAI

’s Market Share Slips as Competition Intensifies

Hyundai Motor India Ltd. (HMIL) reported sluggish Q3FY26 performance, with overall volumes rising just 4.8% YoY, well below the industry’s 15% growth. Strong exports, particularly to the Middle East and Africa, cushioned weak domestic demand. SUV sales underperformed relative to industry trends, while margins faced pressure from capacity ramp-up costs and commodity inflation. Despite a robust product roadmap and entry into commercial mobility, HMIL continues to lose domestic market share, raising concerns about its ability to capitalize on GST-led demand recovery. Financial & Operating Performance • Overall volumes: +4.8% YoY, vs industry growth of 15%. • Exports: +21% YoY, contributing 21% of total volumes. • Middle East & Africa: +30% YoY. • Latin America: +13% YoY. • SUV volumes: +2.4% YoY, lagging broader passenger vehicle segment. • Realisations: +3% YoY, revenue growth +8% YoY, below peers (>20%). • EBITDA margin: Declined 10 bps, impacted by stabilisation costs, commodity inflation, and marketing spends. Demand Environment • GST rationalisation continues to support demand beyond festive season. • Inventory levels: ~3 weeks in Dec ’25, <4 weeks currently. • Rural contribution: 24% of domestic sales, all-time high. • FY27 guidance: 5–6% growth. Strategic Initiatives • Export penetration target: ~30% by 2030, positioning India as global hub. • India–EU trade deal could unlock incremental export opportunities. • Entry into commercial mobility (Prime Taxi range) from Jan ’26; Aura clocked 7,900 units in Jan. • Product roadmap: 26 launches by FY30, including new nameplates, facelifts, derivatives. Market Share & Outlook • Domestic market share: 11.5% in Q3FY26, down from 14.6% in Q1FY25. • Competitive intensity rising, especially in SUVs. • Margins guided at 11–14% FY26, with price hikes (~60 bps) effective Jan ’26. • Valuation: 25.3x FY27E earnings, reasonable but less attractive vs Maruti Suzuki, which has better domestic traction.