Hyundai Motor India Beats Quarterly Profit Estimates on SUV, Export Strength
Bengaluru— Hyundai Motor India reported a smaller-than-expected decline in fourth-quarter profit on Friday, supported by resilient demand for higher-margin sport utility vehicles and stronger export sales despite rising commodity costs linked to Middle East tensions.
The Indian unit of Hyundai Motor posted consolidated net profit of 12.56 billion rupees ($132.96 million) for the quarter ended March 31, compared with 16.14 billion rupees a year earlier.Analysts had expected quarterly profit of 12.37 billion rupees, according to data compiled by LSEG.
Revenue for the quarter rose 5.4% year-on-year to 189.16 billion rupees, while total vehicle sales increased 8.7%.The automaker said export volumes climbed 9.4%, helped by sustained overseas demand and strong domestic sales of its Creta SUV lineup, a key profit driver in India’s rapidly expanding utility vehicle market.
India’s passenger vehicle market has shown signs of recovery since New Delhi reduced taxes in September last year, improving showroom traffic and allowing automakers to retain pricing power despite inflationary pressures.The stronger SUV performance helped Hyundai offset the impact of elevated raw material and logistics costs stemming from disruptions linked to the Iran conflict and instability in shipping routes through the Strait of Hormuz.
Competition in India’s SUV segment has intensified as local manufacturers, particularly Mahindra & Mahindra, continue expanding their market share with new utility vehicle launches.
Hyundai remains one of India’s largest passenger vehicle manufacturers and has increasingly focused on premium SUVs and exports to improve margins amid a broader slowdown in entry-level car demand.
