Hyundai India Unveils Ambitious Plan: 26 New Models by FY30, Targets 15% Market Share

Hyundai Motor India has announced an aggressive product strategy, planning to launch 26 new models by the end of fiscal year 2030. This includes a mix of 13 Internal Combustion Engine (ICE) vehicles, 5 Electric Vehicles (EVs), 8 Hybrid models, and 6 Compressed Natural Gas (CNG) variants. The company also intends to enter the luxury segment by launching its Genesis brand in India by 2027.

In the second quarter of fiscal year 2026 (Q2FY26), Hyundai experienced subdued demand in the domestic market, which led to lower sales volumes. However, strong export growth and improved selling prices helped achieve a modest 1.2% revenue growth year-on-year. Sequentially, domestic volumes saw a 5.5% increase, supported by a recent Goods and Services Tax (GST) rate cut and festive season buying. The Average Selling Price (ASP) also rose due to a better product mix and reduced discounting.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin improved by 110 basis points year-on-year, driven by cost-saving initiatives and a significant decline in raw material costs, boosted by increased localization efforts. Currently, 82% of production is localized, with a target to raise this to over 90% by 2030.

Hyundai anticipates the Indian auto industry will grow at a Compound Annual Growth Rate (CAGR) of 5.2% from FY25 to FY30. The company aims to outperform this, targeting a 7% volume CAGR and increasing its domestic market share from 14% in FY25 to over 15% by FY30. Its utility vehicle share is also projected to rise from 69% to 80% by FY30. The company is also focusing on rural markets, expecting them to contribute around 30% of revenue by FY30.

Export markets, particularly the Middle East, Africa, and Mexico, showed strong demand. Hyundai expects to surpass its initial export growth guidance for FY26 due to new plant capacity and upcoming product launches.

While the new plant's commissioning may temporarily increase costs, Hyundai's strategy of enhanced localization, especially in its EV supply chain, is expected to bolster long-term margins.

Impact: This news significantly impacts the Indian automotive market by signaling aggressive competition and innovation. It suggests a strong commitment from Hyundai to the Indian market, potentially influencing consumer choices, competitor strategies, and related ancillary industries. The focus on EVs and hybrids also aligns with national green mobility goals. Impact Rating: 8/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. YoY: Year-on-year, comparing a period with the same period in the previous year. ASP: Average Selling Price, the average price at which a product is sold. GST: Goods and Services Tax, an indirect tax levied on the supply of goods and services in India. CAGR: Compound Annual Growth Rate, the average annual growth rate of an investment over a specified period longer than one year. ICE: Internal Combustion Engine, a type of engine that burns fuel to produce power, common in traditional vehicles. EV: Electric Vehicle, a vehicle powered by electricity stored in batteries. CNG: Compressed Natural Gas, a fuel gas containing primarily methane, used in vehicles.