Hyundai Motor India expects a recovery in exports after a challenging first quarter that saw a 19.6% volume drop due to supply chain and geopolitical hurdles. With production now normalized and record-high July sales, the company is betting on new model shipments to drive growth for the rest of fiscal year 2027.
Hyundai Motor India is positioning itself for a recovery in its export business following a difficult start to the current fiscal year. The company reported a 19.6% decline in export volumes for the first quarter of fiscal year 2027, with the numbers falling to 38,708 units compared to 48,140 units in the same period a year ago. Management has attributed this performance largely to external pressures, including ongoing geopolitical tensions in the Middle East that disrupted shipping routes, and a temporary production bottleneck caused by a fire at a key supplier facility, Mobis.
Despite these operational challenges, the company appears to have regained momentum. Production has fully normalized, a recovery underscored by the company’s highest-ever monthly sales of 75,360 units achieved in July 2026. This surge represents a 25.4% increase compared to the same month last year, providing a strong signal to investors that the earlier supply chain issues have been resolved.
To drive the export rebound, Hyundai is relying on its updated product portfolio. The company is accelerating shipments of the new Venue, Verna PE, and Exter PE, including the left-hand-drive versions of the Exter, to various international markets. These models are expected to reach dozens of countries by the third quarter. While freight costs and logistical complexities near the Strait of Hormuz remain a lingering concern, the company is working closely with logistics partners to mitigate these risks and maintain a steady flow to key regions like Mexico and Central and South America, where demand remains resilient.
From a financial perspective, the first quarter was also impacted by these disruptions, with the company seeing a 35.1% decline in net profit to ₹889 crore. However, management remains optimistic about the outlook for the full fiscal year. Hyundai has reaffirmed its guidance for fiscal year 2027, projecting 8-10% volume growth and an EBITDA margin of 11-14%, banking on its robust order backlog and the successful rollout of new models.
Investors are also tracking the company’s upcoming Annual General Meeting, scheduled for August 26, 2026. The board has recommended a final dividend of ₹21 per share, reflecting its capital allocation strategy. Looking ahead, the key monitorables will be the sustainability of the recent production levels, the company’s ability to manage margins amid commodity price inflation, and how it navigates intense domestic competition from major rivals like Mahindra & Mahindra and Tata Motors.