Hyundai Motor India Ltd. (HMIL) saw its shares draw investor attention on January 29, 2025, following the release of its third-quarter (Q3) financial results for the fiscal year 2024-25. The company reported a 19% decline in consolidated net profit, amounting to ₹1,161 crore, down from ₹1,425 crore in the same quarter the previous year.
This decline was attributed to lower domestic car sales and export volumes, reflecting broader challenges in the automotive market.
Korean carmaker with production lines of the ‘Creta’ SUV and ‘Grand i10’ and ‘i20’ hatchbacks has reported Rs 16,648 crore of revenue from operations in Q3FY25, lower than the Rs 16,875 crore recorded in the same quarter of the immediate past financial year.
In the same quarter, the company showcased impressive growth of penetration to the rural areas at 21.2%, up from 19.7% in the same period of 2007. According to the filing, the export volume was equal to 40,386 units.
Hyundai Motor’s EBITDA margin trailed a tad at 11.27% in Q3FY25, a 1.61% decline from Q3FY24 of 12.88%. The company blamed this on low demand and geopolitics for the reduction of the margins.
Q3 Sales Volume
The company disposed of 1,86,408 passenger vehicles, including 1,46,022 units of CVs and commercial vehicles in the Indian market during the quarter, with continued growth in the UV –SUV segment.
Hyundai boasted a record CNG sales mix during the current quarter, which it put at 15%, against the 12% it had registered in the Q3 of the prior year.
In the same quarter, the company showcased impressive growth of penetration to the rural areas at 21.2%, up from 19.7% in the same period of 2007. According to the filing, the export volume was equal to 40,386 units.
During the announcement of the company’s performance, Managing Director Unsoo Kim recognized the general difficulties in the entire market due to certain global issues. “At our core, our businesses remain sound, and we are still optimistic about the ability to capitalize on our strengths and seek opportunities to increase volumes and profitability,” Kim said.
Factors Influencing Sales Decline
The decrease in sales can be linked to several factors impacting both domestic and international markets. Hyundai faced heightened competition from other automakers and shifting consumer preferences towards electric vehicles (EVs).
Additionally, the company reported challenges in key export markets that further strained its sales performance.