Hyundai India emerges a driving force for parent


    Hyundai Motor India’s turnover grew 5% to $5.8 bn for FY18 with profit after tax swelling to $300 mn.

    Hyundai Motor India’s turnover grew 5% to $5.8 billion for FY18 with profit after tax swelling 8% to $300 million.
    Mumbai: Hyundai Motor, South Korea’s largest carmaker that produces a car every 33 seconds, has recorded its highest-ever profit and turnover in India in FY18 cushioning the carmaker from pressures in key markets of US, Europe and China.

    Hyundai Motor India’s turnover grew 5% to $5.8 billion for FY18 with profit after tax swelling 8% to $300 million.

    In a market that grew 8%, Hyundai India’s domestic sales grew just 5% in FY18 to 5.4 lakh units. However, a rich model mix and higher capacity utilisation ensured a healthy profit growth in the financial year ended March 2018.

    While the company’s market share in India has been range bound at 16-17%, its contribution increased from 13% to 16% under its erstwhile CEO Y K Koo, who understood the Indian market much better and delivered healthy performance.

    With factories operating at 100% capacity, the South Korean car maker has been relying on shifting production from exports to the domestic market.

    Not surprisingly, FY18 domestic revenues grew 9.5% to $4.2 billion led by higher sales of Creta, Verna and Elite i20. Exports revenue dropped 3% to $1.6 billion on account of currency fluctuation and loss of exports revenue in Asia, said the director’s report.

    In calendar year 2018, the Seoulheadquartered automaker missed its target of 7.5 million units in global sales.

    However, the Indian subsidiary met its target of producing 7.1 lakh units with domestic market contributing about 5.5 lakh units to the total production.


    To cater to the higher demand for the Santro hatchback and the expected surge from the upcoming sub-4 metre SUV codenamed QXI – Hyundai Motor India is in the process of increasing its capacity to 7.5 lakh units.

    To ensure long-term competitiveness it plans to launch new products, improve quality and cost competitive measures besides enhancement of customer experience that will help profitability in the long term.

    Hyundai is of the opinion that the Indian automotive industry is well positioned for growth, given the low rate of auto penetration and increasing affordability.


    Apart from this, India’s enhanced focus on infrastructure growth, e-commerce and a renewed impetus to the rural economy are all factors shaping the opportunity landscape for the automotive sector. By 2026 India is expected to be the third largest automotive market in the world.

    “With Goods and Services Tax, the removal of inter-state checkpoints has led to lower costs associated with the supply chain. Also, warehouse consolidation is leading to greater overall efficiency, resulting in a reduction of overall operational costs,” added the company in its director report.

    With the release of the draft national auto policy in February 2018, the focus shifted more to development of electric and pure hybrid cars. New models were launched with demand for SUV segment growing by 26%. To cater to this growing trend, Hyundai will be launching the QXI and Kona EV in 2019.

    “The Indian auto industry is not without its challenges, including adapting to a structural shift towards electric vehicles (EVs), shared mobility options with ride-sharing permeating the urban landscape, a pan-India shift to (Bharat Stage) BS-VI emission by 2020 and enhanced safety norms. As such, we will have to be more agile than ever and work towards being future-ready,” the director’s report added.
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    4 Comments on this Story

    Dilip 629 days ago
    Suzuki''s sell in 2018 is combined sell of next 6 car makers in India.
    Sheelukkk Kumar629 days ago
    cars for upper middle class.
    Sheelukkk Kumar629 days ago
    Hyundai , avoidable cars.
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