Hyundai Motor India plans to scale its EV sales to 7-8% of total volume by FY28, up from nearly 1% currently. As the company pushes toward a 50% green-powertrain sales mix by 2030, it is navigating rising raw material costs and a broader industry slowdown.
Hyundai Motor India has announced a strategic shift to increase its electric vehicle (EV) sales to 7-8% of its total output by the next fiscal year, FY28. This move represents a significant expansion from the company's current EV penetration level of approximately 1%. The automaker intends to drive this growth through the ramp-up of the Creta EV and the launch of a dedicated compact electric SUV designed for the Indian market.
This target is part of a larger, long-term roadmap that aims to generate 50% of the company's total sales from green powertrains—which include EVs, hybrids, and CNG models—by 2030. The shift reflects a broader industry trend where manufacturers are balancing traditional internal combustion engine sales with cleaner technologies to meet changing consumer preferences and regulatory expectations.
Financials and Operational Challenges
While the company is scaling its green vehicle portfolio, it faces immediate economic pressures. To counter rising commodity and raw material costs, Hyundai implemented a portfolio-wide price hike of up to 1% effective September 2026. In its most recent earnings, the company reported a consolidated revenue of ₹16,335 crore for Q1 FY27, with an EBITDA margin of 9.3%. The management has provided a guidance for the full fiscal year of 8-10% volume growth and EBITDA margins in the range of 11-14%. Achieving these margins will be a key metric for investors to watch as the company spends on new EV models and technological integration.
Beyond internal operational costs, the automotive sector is facing a cooling trend. Leadership at the company expects industry-wide growth to moderate to 5-6% for the second half of the current fiscal year. This slowdown is being influenced by a combination of a high statistical base and general market moderation. Additionally, the company is managing external supply chain hurdles. Export operations experienced temporary disruptions in August 2026 due to a shortage of shipping vessels, an issue linked to ongoing geopolitical tensions in West Asia.
Investors will likely monitor how the company balances its ambitious green energy transition with these cost and logistical pressures. The success of upcoming launches, the ability to maintain the target EBITDA margin of 11-14% despite input cost inflation, and the resolution of export-related shipping delays will be essential factors in the company's performance in the coming quarters.