Hyundai Motor India Ltd. aims to achieve an export growth rate of 7% to 9% in fiscal 2026, according to Tarun Garg, chief operating officer of the company. This will be driven by an increase in production capacity and new model launches.
“We are definitely looking at beating whatever the industry growth happens in the next five years. As far as this year is concerned, we have given guidance of an export growth of 7% to 9%. And domestically, probably in line with the industry, SIAM (Society of Indian Automobile Manufacturers) is saying around 1%,” he told NDTV Profit on Tuesday.
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Garg noted that exports currently account for 20% to 21% of the company's sales. The goal is to raise this figure to 30% by fiscal 2030, he said. The company is exploring new markets such as Indonesia, Yemen and Latin America for exports.
Hyundai Motor India is setting up a new plant in Pune, which will commence operations in the third quarter of fiscal 2026. It will add 170,000 units in phase one (October-December quarter) and a further 80,000 units by 2028, ultimately reaching a total capacity of 1.1 million vehicles.
Garg acknowledged the growing popularity of SUVs over hatchbacks. He attributed this shift to changing customer preferences. Buyers in the Rs 6 lakh to 10 lakh bracket prefer SUVs due to factors like body type, space, safety features, and overall value, he said.
However, hatchbacks still constitute about 23% of the overall 4.3 million Indian market. The company remains committed to hatchback offerings like the i10 Nios and i20, the top executive highlighted.
He pointed out that Hyundai Motor India has successfully shifted first-time buyers from hatches to SUVs. The company has seen first-time buyers rise from 34% to 35% of its overall sales five years ago to 40% today.
Garg highlighted Hyundai's “technology-agnostic approach”, offering petrol, CNG, diesel, and electric powertrains across various segments. The Creta EV is selling over 1,000 units monthly and the company has plans for six EV models by 2030.
It expects EVs to account for 15% of its sales by 2030.
The company is significantly expanding its DC fast charging network, aiming to reach 600 chargers by 2032 from around 89 currently. CNG vehicles currently account for 13% to 15% of its sales.
Hyundai Motor India's SUV penetration reached 68.5% in fiscal 2025. At the same time, the rural and first-time buyer penetration continued to rise. It led to a healthy Ebitda margin of 12.9% for the financial year, with a strong 14.1% in the Q4 FY25.
"After every five years, there is always one year where the growth is muted, sometimes negative," he said. Garg underlined that the company successfully navigated the recent slowdown by maintaining low discounts, introducing new value trims, and capitalising on the growing SUV market.
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