Hyundai India Overcomes Rare Earth Magnet Predicament, Exports Expand in Spite of Domestic Market Obstacles
Hyundai Maintains Strong Performance Despite Domestic Sales Decline, Thanks to Export Growth
Hyundai Motor India has reported a mixed performance in its first quarter of the 2026 financial year (FY26), with a 13% year-on-year increase in exports reaching 48,140 units, while domestic sales declined by 11.5% to 132,259 units. This was amid challenging macroeconomic conditions that subdued domestic demand but were offset by accelerated export growth.
The company's total sales dropped 6.1% year-on-year to 180,399 units in the quarter, with exports making up 27% of first-quarter sales. This export growth helped cushion a six per cent drop in quarterly sales for Hyundai.
Hyundai's domestic sales in India were propelled by the success of the Hyundai Creta, leading the SUV segment. The company anticipates a gradual recovery in domestic demand for the rest of the fiscal year, driven by the monsoon and festive season along with government policy support.
On the exports front, Hyundai expects to sustain positive momentum aligned with its growth commitments. The company aims to achieve a 30% share of sales from exports for the full year, up from the current 27%.
Hyundai India's Managing Director Unsoo Kim expressed optimism about the momentum continuing. The company is banking on the upcoming festive season and easing interest rates for the revival of domestic demand.
In broader context, India as a manufacturing base is growing its footprint in global car exports, with Hyundai among the leading exporters benefiting from lower manufacturing costs, high production quality, and supportive government initiatives.
Hyundai also recorded an enhanced CNG contribution of 15.6% in its total sales, boosted by the introduction of dual-cylinder technology and new variants. The company continues to focus on balanced growth between domestic and export markets, emphasizing market share and profitability.
In conclusion, Hyundai’s export growth in Q1 FY26 offset weaker domestic sales, and the company expects gradual domestic recovery alongside sustained export expansion through the rest of the fiscal year.
The strong export growth of Hyundai Motor India, reaching 27% of first-quarter sales, helped mitigate a six percent drop in quarterly domestic sales, demonstrating the company's resilience in the face of challenging conditions. With expectations of a 30% share of sales from exports for the full year, Hyundai is poised to leverage technology, business strategies, and strategic partnerships to reinforce its presence in the global car market, further enhancing its lifestyle and finance prospects.
