Hyundai Motor India posts record September sales as domestic demand and exports accelerate

Hyundai Motor India Ltd. reported its highest-ever monthly sales since inception in September 2026, with total volumes rising 10.8 per cent year-on-year to 77,916 units. The performance surpassed the company’s earlier monthly record set in July 2026 and points to a recovery in volume momentum after operational and export disruptions affected the June quarter.

Domestic sales increased 10.9 per cent year-on-year to 57,166 units during September, while exports rose 10.4 per cent to 20,750 units. The broad-based increase is notable because exports had faced logistical challenges linked to West Asia and Middle East shipping disruptions in the June quarter, while a supplier fire had temporarily constrained production of certain models.

Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India, said the company was ‘delighted to close September 2026 with our highest-ever total monthly sales of 77,916 units’, adding that growth in both domestic and export markets reflected the appeal of its product portfolio.

The record month provides a positive volume indicator ahead of the festive season, a period when passenger vehicle demand typically improves. Hyundai has also opened bookings for the BAYON, an upcoming all-new nameplate for India, which management expects to support customer interest in the coming months.

The September performance comes after a relatively weak June quarter financially. Net sales in the June 2026 quarter were broadly flat year-on-year at Rs 16,334.63 crore, while profit after Tax fell 35.1 per cent to Rs 888.62 crore. Operating profitability was pressured by higher commodity costs, production disruption, elevated export freight costs and lower contribution from higher-margin models. The company’s PBIDT margin, excluding other income, narrowed to 9.25 per cent from 13.31 per cent a year earlier.

Management has maintained its FY27 volume growth outlook of 8 per cent to 10 per cent, supported by new launches, normalisation of production and improving capacity utilisation. It has also said it expects to outperform industry growth in the second half, although it has remained cautious on margins due to commodity price volatility and competitive discounting.

Hyundai’s domestic sales mix remains increasingly SUV-led, with management indicating that SUVs accounted for 70 per cent of domestic volumes in the June quarter. Rural demand has also remained a supportive factor, with the company reporting an all-time high rural contribution during the period.

Exports remain strategically relevant for Hyundai, which sold 1,90,125 vehicles overseas in FY26. The company has been seeking to diversify export destinations beyond the Middle East, including markets in Central and South America, while the Pune facility is expected to strengthen export Logistics through its connectivity with Mumbai Port. September’s export volumes of 20,750 units represent more than one-tenth of FY26 export sales, underlining the importance of a sustained recovery in overseas shipments.

Hyundai’s manufacturing network had an aggregate installed annual capacity of 9,94,000 units in FY26. Management has said that higher utilisation at Chennai Plant 1, aided by upcoming product launches, could improve cost absorption and operating leverage over time. However, the pace of export normalisation, commodity costs and the ability to retain discount discipline remain key variables for profitability.

The shares were trading at Rs 2,056.30 as of 10:42 am on October 1, 2026, up 1.18 per cent from the previous close. The stock remained 27.61 per cent lower over the preceding year, compared with a 3.22 per cent decline in the BSE 500, and was about 20.4 per cent below its 52-week high of Rs 2,583.55.

Disclaimer: The article is for informational purposes only and not investment advice.