Hyundai Targets Higher Market Share in FY27
Hyundai Motor India Limited (HMIL) expects to improve on its FY26 domestic market share in the current fiscal, with Managing Director and CEO Tarun Garg stating that the company should be able to beat the 12.37-12.38% market share it closed FY26 with, during the company's Q1 FY27 earnings call.
Garg attributed this to production normalisation, strong domestic demand momentum, the upcoming festive season, planned product launches and an increasing number of rural outlets, saying these factors would help the company bounce back strongly in the coming quarters and deliver on its stated growth guidance of 8-10 per cent volume growth for FY27. He also pointed to a disciplined approach to discounting, with HMIL's discount levels declining to 2.8 per cent in Q1 FY27 from 3.4 per cent a year earlier, remaining below the industry average. He added that as new models add to the volume mix, the company's ability to hold this discount discipline should improve further, since new launches typically carry no discounts in their first year in market.
HMIL reported Q1 FY27 (April-June 2026) domestic sales of 1,39,374 units, up 5.4 per cent year-on-year, against overall total sales of 1,78,082 units, down 1.3 per cent, with exports at 38,708 units against 48,140 units a year earlier. The company reiterated its full-year guidance of 8-10 per cent volume growth for FY27, both in the domestic and export markets.
New Mid-Size SUV and Dedicated Venue EV on the Way
HMIL confirmed two new model launches planned for this fiscal. The first is a new mid-size ICE SUV, which the company said is scheduled for launch during the festive season. The second is a dedicated EV in the Venue segment - built on its own architecture rather than derived from the existing Venue - which the company also plans to launch within this fiscal.
The mid-SUV category remains a pivotal focus for Hyundai. While the next-generation Creta debut is not immediate, the automaker intends to bolster its presence in this segment with a new launch during the upcoming festive season, countering Maruti Suzuki’s dual-model strategy with the Grand Vitara and Victoris. Simultaneously, the company's forthcoming dedicated EV will signal its foray into the sub-4-metre electric vehicle space which one of the fastest growing in passenger EV space.
Both models will be manufactured at HMIL's Chennai plant. Garg said Chennai's utilisation, which had come down to around 83 per cent in 2026, is expected to move closer to 90 per cent, which he described as the company's long-standing benchmark utilisation level, once the two new models ramp up.
On the export side, HMIL said it has started shipments of the Verna facelift and the Exter facelift, including a left-hand-drive version of the Exter, widening the company's addressable export markets. The new-generation Venue, which is being manufactured exclusively at the Pune plant, is now being exported to around 35 markets, up from 28 for the outgoing model.
Pune Plant to Add Third Shift, Eyes 3 Lakh Capacity by 2028
The company said it is preparing to commence a third shift at its Pune plant from October 2026, nearly two years ahead of the original schedule of mid-2028. This will take Pune's capacity from around 1,20,000 units (two-shift operation) to a maximum of 1,70,000 units. HMIL said the third shift will support both domestic and export volumes for the Venue.
Garg said a Phase 2 expansion at Pune, taking capacity to 2,50,000 units, is planned for 2028, with a further Phase 3 expansion to 3,00,000 units to follow.
HMIL said its total capex for FY27 is estimated at approximately Rs 7,500 crore, of which 45-50 per cent will go toward product development - largely the two new models - and around 30 per cent toward plant-related investment, including the Pune Phase 2 expansion and upgradation of the Chennai plant.
CNG Push and Rural Demand Drive Volumes
HMIL said CNG contribution reached 18.2 per cent of domestic sales in Q1 FY27, its highest-ever quarterly share, with the Aura and Exter recording CNG contributions of 95 per cent and 32 per cent respectively. The company said it plans to have six CNG models in its lineup by 2030, up from the current three - Grand i10 Nios, Aura and Exter.
Rural markets contributed 25.9 per cent of domestic sales in Q1 FY27, up from 22.6 per cent a year earlier, with rural sales growing 23.2 per cent year-on-year against 2.8 per cent growth in urban markets.
Q1 Profit Falls on Supplier Fire, Export Hit
HMIL reported Q1 FY27 EBITDA of Rs 1,511.7 crore, with EBITDA margin at 9.3 per cent, against Rs 2,108.5 crore and 13.3 per cent in Q1 FY26. PAT stood at Rs 888.6 crore, with PAT margin at 5.4 per cent, against Rs 1,369.2 crore a year earlier. The company attributed the decline to a fire at a supplier facility that disrupted production in June, lower export volumes due to the West Asia conflict, and elevated commodity costs. HMIL said it lost around 13,900 units of production in June, most of which has since been recovered, with full recovery expected within Q2 FY27. The company reiterated its FY27 EBITDA margin guidance of 11-14 per cent.