Hyundai Motor India Targets 8-10% Growth in FY27, Guides for Improved Margins

Hyundai Motor India Limited (HMIL) has projected 8-10% growth in both domestic sales and exports in FY27 and expects profitability to improve, supported by new product launches, better operating leverage, and a stronger export mix.

The guidance was shared by the company in its investor presentation released after its Q4 FY26 earnings announcement.

Hyundai has guided for EBITDA margins of 11-14% in FY27, indicating expectations of margin expansion from current levels despite continuing cost pressures across the industry.

The outlook comes after Hyundai reported a mixed FY26 performance, where strong export growth helped offset weakness in the domestic market.

For FY26, Hyundai’s total sales rose 1.7% year-on-year to 775,031 units. Export volumes grew 16.4% to 190,125 units, while domestic sales declined 2.3% to 584,906 units.

The company said demand recovery during the second half of the fiscal year, aided partly by GST reductions in select vehicle categories, supported volumes.

Hyundai is preparing a fresh product offensive in FY27 as competition intensifies in the SUV and electric vehicle segments.

The automaker plans to introduce two new nameplates during the year, including a new internal combustion engine SUV and an electric SUV. The launches are expected to strengthen Hyundai’s position in utility vehicles, which continue to account for the bulk of growth in the passenger vehicle market.

SUVs contributed 68% of Hyundai’s domestic sales mix in FY26, led by models such as the Hyundai Creta, Hyundai Venue, and Hyundai Exter. The Creta continued to remain among the company’s strongest-selling products during the year.

The company also highlighted growing traction in rural markets and alternative fuel vehicles. Rural penetration reached a record 25% in Q4 FY26, while CNG contribution rose to 18%.

In FY26, Hyundai’s revenue rose 2.3% to ₹70,763 crore. However, the EBITDA margin narrowed to 12.2% from 12.9% a year earlier due to commodity inflation and costs related to capacity stabilisation.