Hyundai Motor India Ltd., (HMIL) reported consolidated net profit for the September quarter contracted by 16% over the year ago period to ₹1,375 crore due to weak market sentiments and geopolitical factors
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Hyundai Motor India Ltd., (HMIL) reported consolidated net profit for the September quarter contracted by 16% over the year ago period to ₹1,375 crore due to weak market sentiments and geopolitical factors.
Revenue from operations declined by 7.5% to ₹17,260 crore due to Red Sea crisis, while operational and cost efficiencies provided some positive support, the carmaker said in a statement.
The HMIL sold 1,91,939 units of passenger vehicles, of which Sport Utility Vehicle contributed significantly amounting to 1,49,639 units in the domestic market and export was 42,300 units.
SUV accounted for 69% of total domestic volume sales, followed by hatchback 20% and sedan 17%. The HMIL was going stronger on premiumisation with continuous growth in SUV contribution. It also saw steady growth in CNG volumes supported by dual-cylinder technology.
“In the mid-to-long term, HMIL expects a sustained demand momentum in the industry and will continue to focus on quality of growth by maintaining an optimum balance between volume, market share and margins,” said managing director Unsoo Kim during media interaction..
“Despite the sluggish market conditions, we have successfully maintained profitability in H1, largely due to our proactive and continuous cost control measures. Further, we will be launching the Creta EV for mass market in the coming months and we expect it will be a game changer in the EV market,” he said.
While talking about exports, he said that they have done well in the first half of FY 2025 against second half of FY 2024 especially in Africa, Mexico and Latin American countries. However, West Asian countries continued to face headwinds due to Red Sea crisis. The HMIL will closely monitor the situation and plan to mitigate the risk.
Stating that the macro economic environment is expected to remain challenging for the auto sector in the near term, he said: “We plan to focus on our strength and don’t want to loose out on any potential opportunity to improve our volumes and profitability.”
He also said that the construction of Pune plant was going on in full swing and the commercial production would start by Q3 of FY26.
Published – November 13, 2024 06:29 am IST
