Hyundai Motor India targets 8–10% domestic sales growth as tax cuts boost demand
The Logo of Hyundai Motor India Limited is seen on a parked car in the company's stockyard, in the outskirts of Ahmedabad, India, October 8, 2024. REUTERS/Amit Dave/File Photo
May 8 : Hyundai Motor India said on Friday that it expects domestic sales to grow 8-10 per cent in the current fiscal and plans to invest $794 million to double capacity at its Maharashtra plant, as the carmaker rides a demand boost following tax cuts.
Vehicle sales in India have picked up since New Delhi lowered consumption taxes last September, lifting showroom footfalls.
Last month, however, the company said it would increase prices of its vehicles by up to 1 per cent from May to combat rising commodity costs linked to the Iran war, joining domestic leader Maruti Suzuki and global peers such as Mercedes-Benz and BMW.
The Creta SUV maker said it plans to double capacity at its Talegaon plant, near Pune city, to 320,000 units by the end of fiscal year 2027 and will also launch two new models, including a new electric SUV.
The market environment shifted meaningfully in the second half of fiscal 2026 following the government's tax overhaul, CEO Tarun Garg said in a post-earnings call.
For fiscal 2026, domestic sales were down 2.3 per cent, underscoring the subdued demand that carmakers were seeing before the tax cuts took effect.
India cut levies on small cars and vehicles measuring less than four meters to 18 per cent from 28 per cent, lowering prices and lifting demand for price-sensitive models.
Exports have remained a bright spot for Hyundai, with fiscal 2026 exports rising 16.4 per cent.
The Indian unit of South Korea's Hyundai Motor reported consolidated profit of 12.56 billion rupees for the fourth quarter, down from 16.14 billion a year earlier, but above analysts' estimate of 12.37 billion rupees, according to data compiled by LSEG.
Revenue rose 5.4 per cent to 189.16 billion rupees.
($1 = 94.4800 Indian rupees)
