India’s passenger cars and utility vehicles sector saw robust growth in 2024, with total passenger vehicle sales reaching around 43 lakh units, up 4.2% from the previous year. Utility vehicle sales surged to 25.2 lakh units, reflecting the segment’s rising dominance, while the overall automotive market was valued at $121.5 billion in 2024.
With a market capitalization of Rs 1.72 lakh crore, the shares of Hyundai Motor India Ltd closed at Rs 2,125.20 per share, increased around 2.56 percent as compared to the previous closing price of Rs 2,072.10 apiece.
As per the brokerage, Hyundai Motor India’s (HMIL) capacity expansion will drive a strategic shift. HMIL, a subsidiary of Hyundai Motor Company (HMC), is India’s second-largest passenger vehicle (PV) manufacturer by volume, expected to reach this position by FY25.
Further, Hyundai Motor India’s optimisation-focused strategy is poised to benefit from its new Maharashtra plant, which will raise capacity by 30%. UBS anticipates this move will strengthen both domestic and export performance, especially in the SUV segment, enhancing the company’s competitive edge and growth trajectory in the Indian automotive market.
Also read: Infra stock skyrockets 11% after securing ₹4,800 Cr order for coal mining block
UBS projects strong growth for Hyundai Motor India, with domestic volumes rising 10% and exports 11% during FY26–28, versus minimal growth in FY19–25. India is seen emerging as a global production hub. A 16% EBITDA CAGR is expected, driven by a better product mix, operating leverage, and dealer network expansion.
Despite Hyundai’s smaller scale than Maruti and weaker portfolio than M&M, its EBIT margin remains superior. UBS expects EBITDA margin expansion in FY26–28, supported by operating leverage and rising exports. Though mix gains and commodity benefits may moderate, Hyundai’s profitability outlook remains strong due to its efficient cost and export structure.
UBS, one of the well-known brokerages globally, has maintained its ‘Buy’ rating on the auto stock with a target price of Rs 2,350 apiece, indicating a potential upside of 11 percent from the Wednesday price of Rs 2,125.20 per share and This is also the highest price target for the company.
Looking forward to the company’s financial performance, revenue increased by 3 percent from Rs 17,132 crore in Q4FY24 to Rs 17,562 crore in Q4FY25. Further, during the same time frame, net profit decreased by 4 percent from Rs 1,649 crore to Rs 1,583 crore.
Hyundai plans 26 model launches between FY26–30, including 20 ICE and 6 EVs, reflecting a balanced strategy across traditional and electric mobility. This aggressive pipeline signals Hyundai’s commitment to product refresh, innovation, and expansion, enhancing competitiveness in India’s evolving auto market and supporting future growth across segments.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
