'Buy' Hyundai Motor Maintains Motilal Oswal, Sees Upto 15% Upside

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Motilal Oswal Report

We met with Hyundai Motor India Ltd.'s management to understand the current industry landscape and the company’s strategic direction. The overall demand environment remains muted, with the passenger vehicle segment expected to grow modestly at 1-4% in FY26E. SUVs are likely to continue to drive growth, and hence Hyundai Motor appears to be well positioned to benefit from this trend.

Its recently launched EV variant of Creta is witnessing a healthy response, and the company expects this to contribute to about 10% of overall Creta sales going forward.

Management has indicated that it would continue to explore alternate powertrains, including EVs, hybrids, flex fuels, et al., and would be ready to launch the same in the Indian market with the backing of its parent, as and when the market is ready.

For EVs, Hyundai Motor would like to build a long-term sustainable model that is profitable and hence is gearing up with aggressive localization plans. While exports have remained weak in Q3 FY25, management expects the same to stabilize in Q4 and report growth in CY25.

Hyundai Motor is likely to time its new model launches once its Pune plant begins production, SOP for which is scheduled in Q4 CY25. Given its SUV-heavy portfolio, Hyundai Motor is well-positioned to benefit from India's premiumization trend. We reiterate our Buy rating on Hyundai Motor with a target price of Rs 1,960, premised on 26 times Dec’26E.

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