Hyundai India Faces Profit, Hyundai Motor India Ltd (HMIL), the country’s second-largest car manufacturer by sales, reported a 4% year-on-year drop in its profit after tax (PAT) for the fourth quarter of FY2024, settling at ₹1,614 crore. This decline primarily stems from a noticeable slump in domestic vehicle sales, even as the export numbers held steady.
Let’s take a detailed look at what caused this dip, how the company’s financial performance fared overall, and what the future might hold for Hyundai in India’s competitive automotive sector.
Hyundai Q4 Financial Performance
Hyundai India Faces Profit, In the quarter ending March 31, 2024, Hyundai India recorded a 4% decline in net profit, down from ₹1,678 crore in the same quarter last year. The decline in domestic sales weighed heavily on the company’s earnings, offsetting gains from exports and cost optimization strategies.
Key Financial Highlights for Q4 FY24
- Profit After Tax (PAT): ₹1,614 crore (down 4% YoY)
- Total Revenue: ₹20,383 crore (down from ₹20,750 crore YoY)
- Domestic Sales: Declined by 5.3% YoY
- Export Performance: Remained stable with marginal growth
- Operating Profit Margin: Slightly compressed due to weaker sales mix
What Led to the Dip in Domestic Sales?
There are several reasons behind the decline in Hyundai’s domestic sales during Q4
- Rising Competition: The Indian automotive market has become more competitive with aggressive product launches from Tata Motors, Mahindra, Maruti Suzuki, and new entrants like MG and Citroen.
- Evolving Consumer Preferences: Indian customers are increasingly leaning toward SUVs, and while Hyundai has a strong presence with models like the Creta and Venue, rivals have upped their game significantly in this segment.
- Regulatory Transitions: The shift to BS6 Phase 2 norms impacted some manufacturers’ inventory and production timelines, affecting availability and deliveries.
- Rural Market Slowdown: Sluggish rural demand due to erratic monsoon and high inflation also dampened entry-level car sales.
Export Performance
Hyundai India Faces Profit, While domestic sales faltered, Hyundai’s export operations provided a cushion. The company’s consistent focus on international markets such as Latin America, Africa, and the Middle East helped maintain steady outbound shipments.
Hyundai exported more than 60,000 vehicles during Q4 FY24, registering a slight increase over the previous year. The company remains India’s leading passenger car exporter a key strategic pillar for its long-term growth.
Cost Management and Innovation
To navigate market challenges, Hyundai adopted aggressive cost control measures, improved operational efficiency, and focused on optimizing its supply chain. Despite inflationary pressure on raw materials, the company managed to maintain a healthy EBITDA margin.
Hyundai also continued investing in research and development, particularly around electric vehicles (EVs) and connected car technologies. This long-term focus on innovation is expected to play a vital role in sustaining profitability in the coming years.
EV Plans & Future Outlook
Hyundai India Faces Profit has been bullish about its electric vehicle roadmap in India. The company plans to launch several new EV models over the next few years, beginning with the Hyundai Creta EV and Ioniq 5 expansion.
The automaker has committed over ₹4,000 crore investment in EV development, charging infrastructure, and local manufacturing capabilities. With increasing government support for green mobility and rising consumer awareness, Hyundai’s timely shift to EVs could strengthen its position in the market.
Additionally, Hyundai is betting big on hydrogen fuel cell technology, although that remains a long-term strategy.
CEO Statement and Strategic Direction
Mr. Unsoo Kim, MD & CEO of Hyundai Motor India, acknowledged the challenging macroeconomic environment but remained optimistic about the company’s trajectory.
While Q4 posed some headwinds due to subdued domestic demand and transitionary market conditions, we are focused on innovation, sustainability, and customer-centricity. We believe our diverse product portfolio and upcoming EV launches will drive future growth.
This statement signals Hyundai’s commitment to not only bounce back but also lead in areas like electrification, safety, and digital car ownership experiences.
Hyundai’s Performance in FY24
Hyundai India Faces Profit, Despite a sluggish Q4, Hyundai had a reasonably strong full-year performance in FY24.
Full-Year FY24 Highlights:
- Total Domestic Sales: 6.14 lakh units (up 3% YoY)
- Exports: 1.6 lakh units (up 6% YoY)
- Total Revenue: ₹85,412 crore (up from ₹81,243 crore YoY)
- Net Profit: ₹7,056 crore (up 5.7% YoY)
These figures indicate that while Q4 was a speed bump, the overall financial year remained positive for the automaker.
Final Thoughts: Can Hyundai Bounce Back?
Yes, and here’s why:
- Strong Brand Recall: Hyundai is still a top choice among Indian buyers for its value-for-money proposition, stylish design, and after-sales service.
- Upcoming Launches: With new models lined up in both ICE and EV categories, Hyundai is gearing up for a strong comeback in the coming quarters.
- Digital and Dealer Innovations: Hyundai’s push toward online car buying platforms and AI-powered services is enhancing customer engagement.
- Resilience and Strategy: The company’s long-term strategy and resilience to market shifts are likely to help it weather short-term challenges.
Conclusion
Hyundai India Faces Profit, While Hyundai Motor India reported a 4% decline in Q4 profit to ₹1,614 crore due to weaker domestic sales, the company’s overall fundamentals remain strong. With robust export performance, a clear EV vision, and a customer-first approach, Hyundai is poised to overcome this temporary dip and continue its growth journey in the Indian auto landscape.
Stay tuned as Hyundai drives into a future of innovation and sustainability.
For the full scoop and in-depth analysis, read the complete report on Business Today
