Hyundai Motor India beats profit forecast on strong SUV demand

Friday 08 May 2026 - 10:45

Hyundai Motor India reported better-than-expected quarterly performance, supported by strong demand for sport utility vehicles (SUVs) in both domestic and export markets, even as overall profits declined year-on-year.

The Indian subsidiary of South Korea’s Hyundai Motor Company posted a consolidated profit of 12.56 billion rupees for the quarter ending March 31, compared with 16.14 billion rupees a year earlier. Despite the decline, the result exceeded analyst expectations, which had forecast a sharper drop.

The company’s performance was largely driven by strong sales of higher-margin SUVs, particularly the popular Creta model. Rising demand in both India and overseas markets helped offset weaker segments and increased input costs.

India’s automotive sector has seen improved momentum following recent tax reductions introduced by the government, which have boosted consumer demand and increased showroom traffic across major cities. This has strengthened pricing power for leading manufacturers.

Hyundai recorded an 8.7% rise in total vehicle sales during the quarter, while exports increased by 9.4%. The company also faced competition from domestic rivals such as Mahindra & Mahindra, which has a strong presence in the SUV segment.

Higher commodity prices and global economic uncertainty continued to pressure margins across the industry, but strong SUV demand helped Hyundai maintain relatively stable financial performance.

Revenue for the quarter rose by 5.4%, reaching 189.16 billion rupees, reflecting steady demand in key markets and the company’s continued focus on high-value vehicle segments.

Industry analysts note that SUVs remain the primary growth driver in India’s automotive market, as consumers increasingly prefer larger, feature-rich vehicles. Manufacturers are expected to continue expanding SUV offerings to maintain competitiveness.

Hyundai’s results highlight the resilience of the Indian auto sector, even amid global cost pressures and geopolitical uncertainty affecting supply chains and raw material prices.