Hyundai India Accelerates EV Strategy with 2027 Launch, Reports Strong ICE SUV Demand and Export Growth
Hyundai Motor India Ltd (HMIL) has announced a significant acceleration in its electric vehicle (EV) strategy, with plans to launch a dedicated, India-focused electric car in early 2027. This move is set to further bolster the company's momentum in the evolving automotive landscape, even as it continues to witness robust demand for internal combustion engine (ICE)-powered SUVs and a notable rise in exports.
Confidence in Rising EV Penetration and Strategic Focus
Tarun Garg, managing director and CEO of HMIL, expressed strong confidence in the growing adoption of electric vehicles. "We are confident that EV penetration will continue to rise," he stated, highlighting that EV penetration in the passenger vehicle segment nearly doubled from 2.5% in calendar year 2024 to approximately 4.4% in 2025. Garg emphasized that the upcoming India-focused EV is designed to leverage this upward trend, positioning Hyundai to capitalize on the expanding market.
He further elaborated on the broader strategic implications, noting, "EVs will play an increasingly important role in the fleet segment as well, and commercial applications will be a critical part of our long-term EV strategy, similar to our approach in CNG." This statement underscores Hyundai's commitment to diversifying its EV portfolio beyond personal vehicles, aiming to tap into commercial and fleet opportunities.
Strong Performance in CNG and Post-GST Growth
In a related development, HMIL achieved a record 16% CNG penetration in the recent quarter, marking its highest-ever CNG mix, compared to around 14%–15% in the previous year. This achievement reflects the company's successful efforts in promoting alternative fuel options alongside its EV initiatives.
The company is also experiencing broad-based growth across various segments in the post-GST period. In January alone, the Creta model saw volumes reach nearly 18,000 units, while the Venue recorded its highest-ever monthly sales. The Venue has garnered a particularly strong response, with cumulative bookings close to 80,000 units so far, indicating sustained consumer interest in Hyundai's SUV lineup.
Rural Markets and Export Expansion Drive Growth
Rural markets continue to be a key growth driver for HMIL, with the company reporting its highest-ever quarterly rural contribution to domestic sales, exceeding 24%. This trend highlights Hyundai's effective penetration and acceptance in non-urban areas, contributing significantly to overall sales performance.
On the international front, exports rose by 21%, driven by sustained demand across key markets. HMIL's major export regions—West Asia and Africa, and Latin America—reported strong double-digit growth, showcasing the global appeal of Hyundai vehicles and the company's expanding footprint in these regions.
Robust Financial Results Amid Cost Challenges
For the third quarter ended December, HMIL reported robust financial results. Revenue from operations increased to Rs 17,973.5 crore, up 8% year-on-year. Profit after tax also saw growth, rising to Rs 1,234.4 crore from Rs 1,160.7 crore a year earlier.
EBITDA for the quarter stood at Rs 2,018.3 crore, with margins largely flat at 11.2% amid cost headwinds. This performance indicates Hyundai's ability to maintain profitability despite facing economic pressures, underscoring its operational resilience in a competitive market.
