In its latest annual report, the company outlined six strategic priorities to stay resilient and drive future growth. These include expansion of the product portfolio, premiumisation, calibrated capacity expansion, boosting EV market share, strengthening its position as an export hub, enhancing brand salience, and strengthening both physical and digital networks.
Domestic & export growth in FY26
Despite global economic uncertainties and base effect challenges, Hyundai remains confident in the Indian market’s resilience. “While we expect our FY 2025–26 domestic growth to be broadly in line with industry estimates of low single digits, we anticipate 7–8% volume growth in exports, supported by robust demand for our products in emerging markets,” said Unsoo Kim, Managing Director of HMIL, in the annual report.
Bets big on premium SUVs & Genesis entry on the horizon
As part of its premiumisation strategy, the company aims to strengthen its SUV portfolio and expand mid-to-premium offerings across other segments, with targeted product introductions across diverse price points and powertrains.
In FY 2024–25, Hyundai recorded its highest-ever domestic SUV contribution, with SUVs accounting for 69% of total sales. Its SUV Creta maintained its leadership in the mid-size SUV segment with over 30% market share and further enhanced its appeal through the introduction of the Hyundai Creta Electric. Meanwhile, the Alcazar facelift, launched in Q4 FY 2024–25, received positive market feedback, cementing its position as a popular family vehicle.
“We are strategically exploring the introduction of Genesis—Hyundai’s global luxury brand—to redefine the luxury segment through cutting-edge innovation, distinctive design, and unique experiences. This initiative aligns with our vision to meet the evolving aspirations of discerning Indian consumers,” said Tarun Garg, Whole-Time Director and Chief Operating Officer, HMIL.
With Talegaon unit, capacity to surpass 1 million
Hyundai’s next phase of growth is underway with the commencement of engine production at its third manufacturing facility in Pune. Vehicle production at the same plant is expected to begin by Q3 of FY 2025–26. This strategic expansion is set to help HMIL achieve its annual production target of 1 million units.
The upcoming Talegaon manufacturing plant, scheduled to begin partial commercial operations in FY 2025–26, will play a crucial role in meeting increasing domestic demand. The Talegaon unit will initially add 170,000 units, eventually scaling up to 250,000 units annually. Combined with the Chennai facility—which currently has a capacity of 824,000 units—Talegaon will increase Hyundai’s total production capacity to 994,000 units, with a projected rise to 1,074,000 units upon full-scale operations.
Strong focus on localisation
HMIL aims to maintain a capacity utilisation rate of over 90%, supported by a robust mix of domestic and export volumes. To further strengthen its manufacturing ecosystem, Hyundai is deepening localisation efforts by expanding its supplier base, particularly in and around Talegaon.
“Localisation remains a key driver, achieving 81.7% local sourcing in FY 2024–25 for ICE vehicles and successfully localising over 1,200 components since 2019 in collaboration with nearly 200 suppliers. For EVs, our dedicated battery assembly line with Mobis India enhances supply chain resilience while driving down costs,” said C.S. Gopalakrishnan, Whole-Time Director and Chief Manufacturing Officer, HMIL.
Strong momentum in exports
Hyundai continues to solidify its position as India’s largest cumulative exporter of passenger vehicles, recently celebrating 25 years of exports. With flexible shipping solutions and close integration with Hyundai Motor Company’s global export ecosystem, HMIL now exports to over 150 countries, with a strong focus on emerging markets such as Africa, the Middle East, and Latin America.
The company reported strong segment performance in markets like Saudi Arabia, South Africa, Peru, and Mexico. Additionally, Hyundai re-entered the Bhutan market following the lifting of an import ban.
SUVs remain a key global growth driver, and Hyundai continues to focus on this segment with a broad portfolio—from compact SUVs to larger models like the Alcazar. The Exter was launched in South Africa in 2024, while the Alcazar facelift, introduced in Q4 FY 2024–25, has received positive reviews and strong family market acceptance.
In FY 2024–25, HMIL invested ₹5,626 crore, fully funded through internal accruals—a reflection of its operational resilience and strong liquidity position, said Wangdo Hur, Whole Time Director, Chief Financial Officer, HMIL. The company posted a consolidated revenue of ₹69,193 crore and a consolidated profit after tax (PAT) of ₹5,640 crore.