Hyundai Expects High Double-Digit Export Growth in H2 FY27 Despite West Asia Disruptions

Hyundai Motor India expects high double-digit year-on-year growth in exports during the second half of FY27, banking on stronger demand from Latin America and Mexico, new SUV models and alternative shipping routes to offset disruptions in West Asia.

Speaking during the company's Q2 FY27 earnings call on Wednesday, Managing Director and CEO Tarun Garg said Hyundai remained optimistic about its overseas business despite geopolitical tensions affecting its original export plans.

"We aim to deliver high double-digit growth in H2 on year-on-year basis in exports, supported by our strong products and operational effectiveness," Garg said.

The outlook follows a recovery in shipments during the September quarter, when Hyundai's exports increased 3.7% year-on-year to 53,300 vehicles from 51,400 units. Exports also grew nearly 38% sequentially from 38,708 vehicles in the June quarter, according to the company's Q2 FY27 investor presentation.

However, exports during the first half of FY27 declined 7.6% to 92,008 units from 99,540 vehicles a year earlier, reflecting the impact of disruptions in international markets.

Saravanan T, Vice President, Finance, said the Middle East had been the most affected export region during the September quarter, but Hyundai had managed to partly offset the impact by increasing shipments to other destinations.

According to management, exports to the Middle East grew 57% sequentially during Q2, while Africa recorded 35% growth. Shipments to Mexico increased 56%, followed by Latin America at 10%.

The company has also been working with logistics partners to identify alternative ports and shipping routes to maintain vehicle shipments.

"We have been trying to move our shipments through different ports, through different routes," Saravanan said, adding that Hyundai continued to evaluate logistics alternatives with its partners.

Higher Freight Costs Passed to Distributors

Responding to a question on whether higher shipping and insurance expenses were putting pressure on overseas margins, Saravanan said the company had been able to recover additional logistics costs from its distributors.

"The logistics cost has been rising, no doubt. But so far, we have not seen any impact on our margins because we could pass on the increased cost to the distributors," he said.

The automaker also reported a net foreign exchange gain on a year-on-year basis, which provided support to its financial performance.

However, Hyundai's overall profitability remained under pressure because of higher commodity costs. Its consolidated EBITDA margin declined to 9.5% in Q2 FY27 from 13.9% a year earlier, despite revenue increasing 18.5% to a record Rs 20,696 crore.

Management attributed the decline mainly to raw material inflation, while higher volumes, improved product mix and cost reductions helped EBITDA margin recover by 20 basis points sequentially.

New SUVs to Support Export Recovery

Hyundai is also banking on its SUV portfolio to strengthen overseas sales in the coming quarters.

Saravanan said the company expects exports of the new Venue to at least double this financial year compared with the previous year, while shipments of the Exter are expected to grow by at least 50%.

The company also plans to export the recently launched Bayon SUV to around 50 international markets, with Garg indicating that overseas shipments would begin in the next quarter.

Launched in India on October 26, the Bayon is part of Hyundai's strategy to expand its SUV portfolio for both domestic and overseas markets.

The planned expansion comes as Hyundai looks to strengthen India's role as a global manufacturing and export hub. At its August 2026 CEO Investor Day, Hyundai Motor Company outlined plans to export approximately 30% of its India production volume by 2030, targeting markets across the Middle East, Africa, Asia and South America.

For FY27, Hyundai had earlier guided for 8-10% year-on-year growth in both domestic and export volumes. The sharper H2 export growth ambition comes after weaker shipments during the first half.

While management remains confident of improving export volumes, the pace of recovery will depend on geopolitical developments, the availability of shipping routes and demand in overseas markets.