Hyundai Motor shares climb over 6%, break IPO price for first time since listing. More gains ahead?
The rally was driven by the company's management sounding optimistic about sustained growth in exports, which has offset weak domestic demand in recent quarters amid falling urban buyer interest and a high base in recent years.
Hyundai Motor India is targeting single-digit volume growth in exports in the current fiscal year. 'We aim to become Hyundai's largest export hub outside South Korea. We aspire to continue our growth trajectory in exports in the coming years,' Hyundai Motor India Managing Director Unsoo Kim told analysts during a call.
'For FY26, we anticipate export volume growth of around 7–8%, supported by robust demand for our products in emerging markets,' Kim added. The country's second-largest car manufacturer exported 163,386 vehicles in FY25 compared with 163,155 units in FY24.
The company recently announced significant enhancements to its premium SUV, the Hyundai Alcazar. It has also guided 26 launches by 2030, including eight launches in the next two years, some of which will be refreshes.
Meanwhile, industry body SIAM has projected passenger vehicle sales growth in the domestic market to be in the low single digits in FY26.
Domestic brokerage firm Kotak Institutional Equities retained its 'Buy' rating on the stock with a target price of ₹ 2,050. The brokerage expects industry trends to improve from 2HFY26, driven by multiple tailwinds despite near-term challenges. 'We expect demand trends to remain muted in the near term, owing to weak consumer sentiment, limited new launches, and a high base,' it said.
Kotak forecasts the company to gain market share from CY2026, driven by new and refreshed product launches in the SUV segment across multiple powertrains and by expanding the total addressable market through foraying into the MUV segment in FY27.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
35 minutes ago
- Time of India
Indians on the hybridge to electric future: Hybrid cars demand surges at a pace similar to EVs despite fewer options
Demand for strong hybrid cars is growing at a pace similar to electric vehicles (EVs) despite limited offerings, and government incentives promoting the latter, prompting carmakers to line up more hybrid models to meet increasing customer demand amid high fuel prices. There are only about five strong hybrid models on sale in the country, compared to 15 EVs. Yet, both segments grew about 18per cent year-on-year in FY25, with hybrids emerging as a practical, fuel-efficient alternative while pure electric adoption slowed amid continuing infrastructure bottlenecks. Automakers are creating more room for hybrids in their emissions compliance strategies ahead of stricter fuel-efficiency rules set to kick in from April 1, 2027. From Maruti Suzuki to Hyundai Motor India and Mahindra & Mahindra, they are gearing up to launch more than half a dozen hybrid vehicles over the next two years. 'Interestingly, automakers that previously dismissed hybrids are now actively evaluating or developing hybrid models for India,' said Gaurav Vangaal, associate director at S&P Global Mobility. 'This shift reflects evolving market dynamics and growing consumer interest, which—month after month—is increasingly steering the industry toward hybrid technology.' According to the industry, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid variants. Maruti Suzuki offers only a strong hybrid version of the Invicto MPV. At Honda, the share of strong hybrid in City sedan sales has increased to almost 15per cent, up from 9-10% after launch. 'With the upcoming implementation of CAFE 3 norms, we can expect a surge in launches across both hybrid and electric powertrains,' Vangaal said. The government is in the process of formulating the third edition of the Corporate Average Fuel Efficiency (CAFE 3) norms. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet emissions. Fuel-wise vehicle sales data collated by industry body Society of Indian Automobile Manufacturers (SIAM) show hybrid vehicle sales rose 18% year-on-year to 105,000 units in FY25. Electric vehicle sales, too, grew at a similar pace to 118,000 units, largely driven by new, more affordable models introduced by Tata Motors, JSW MG Motor and M&M. Sales of petrol vehicles, meanwhile, dipped by 6.6per cent to 2,482,000 units. Industry watchers said the pace of growth in EV sales has moderated (from about 90% in FY24) despite central and state governments lining up several incentives — from reduced GST rate of 5per cent, waiver of registration charges and road taxes, and income tax benefits to enthuse customers to shift to EVs. They mostly blame it on the lack of adequate charging infrastructure. Thus, buyers looking to save on fuel costs are increasingly opting for strong hybrid vehicles. New Hybrids While Maruti Suzuki is set to take the covers off a hybrid SUV (codenamed Y17) ahead of the festive season this year, its Korean rivals Hyundai and Kia are set to drive in their first strong hybrid models next year, industry insiders said. JSW MG Motor is examining plug-in hybrid vehicles for launch in India. Industry insiders said homegrown M&M, which so far has been betting big on born EVs, too, is developing a strong hybrid vehicle for launch in 2027. 'It is heartening to note that both BEVs and strong hybrids are growing well,' said Rahul Bharti, senior executive officer at Maruti Suzuki. 'SHEVs (strong hybrids) also enhance energy efficiency and reduce CO2 significantly over pure petrol/ diesel vehicles.' The strong hybrid variant of Grand Vitara, for instance, emits 26per cent less CO2 than the pure ICE model and offers 36per cent increase in fuel efficiency. In the case of the Invicto, energy efficiency is up by 44per cent while CO2 reduction is 30%. 'As the market leader, we will pursue all powertrain technologies including BEVs, SHEVs, CNG and CBG and ethanol flex fuel for decarbonisation,' Bharti said. Mahindra also is planning to drive in a hybrid version of XUV 3XO, a senior industry executive aware of the company's plans said. 'When diesel prices were lower than petrol, customers who had to run their vehicle a lot everyday preferred to buy a diesel vehicle. The same thing is going to happen with hybrids today,' the executive said. Hyundai Motor India managing director Unsoo Kim at its latest post-earnings call said the company will launch 26 products – 20 ICE and 6 EVs – by FY30, in addition to ongoing product interventions and updates. 'Additionally, we shall be introducing new ecofriendly powertrains like hybrids,' he said. Kim said the company is looking at building a 'well-balanced portfolio across (internal combustion engine) ICE and eco-friendly technologies to cater to the diverse customer's needs across segments.'
Time of India
8 hours ago
- Time of India
Indians on the Hybridge to Electric Future
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Epaper Demand for strong hybrid cars is growing at a pace similar to electric vehicles (EVs) despite limited offerings, and government incentives promoting the latter, prompting carmakers to line up more hybrid models to meet increasing customer demand amid high fuel are only about five strong hybrid models on sale in the country, compared to 15 EVs. Yet, both segments grew about 18% year-on-year in FY25, with hybrids emerging as a practical, fuel-efficient alternative while pure electric adoption slowed amid continuing infrastructure are creating more room for hybrids in their emissions compliance strategies ahead of stricter fuel-efficiency rules set to kick in from April 1, 2027. From Maruti Suzuki to Hyundai Motor India and Mahindra & Mahindra, they are gearing up to launch more than half a dozen hybrid vehicles over the next two years.'Interestingly, automakers that previously dismissed hybrids are now actively evaluating or developing hybrid models for India,' said Gaurav Vangaal, associate director at S&P Global Mobility. 'This shift reflects evolving market dynamics and growing consumer interest, which, month after month, is increasingly steering the industry toward hybrid technology.' According to the industry, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid Suzuki offers only a strong hybrid version of the Invicto MPV. At Honda, the share of strong hybrid in City sedan sales has increased to almost 15%, up from 9-10% after launch.'With the upcoming implementation of CAFE 3 norms, we can expect a surge in launches across both hybrid and electric powertrains,' said Vangaal of S&P. The government is in the process of formulating the third edition of the Corporate Average Fuel Efficiency (CAFE 3) norms. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet vehicle sales data collated by industry body Society of Indian Automobile Manufacturers (SIAM) show hybrid vehicle sales rose 18% year-on-year to 105,000 units in FY25. Electric vehicle sales, too, grew at a similar pace to 118,000 units, largely driven by new, more affordable models introduced by Tata Motors, JSW MG Motor and M& of petrol vehicles, meanwhile, dipped by 6.6% to 2,482,000 watchers said the pace of growth in EV sales has moderated (from about 90% in FY24) despite central and state governments lining up several incentives — from reduced GST rate of 5%, waiver of registration charges and road taxes, and income tax benefits to enthuse customers to shift to EVs. They mostly blame it on the lack of adequate charging infrastructure. Thus, buyers looking to save on fuel costs are increasingly opting for strong hybrid Maruti Suzuki is set to take the covers off a hybrid SUV (codenamed Y17) ahead of the festive season this year, its Korean rivals Hyundai and Kia are set to drive in their first strong hybrid models next year, industry insiders MG Motor is examining plug-in hybrid vehicles for launch in insiders said homegrown M&M, which so far has been betting big on born EVs, too, is developing a strong hybrid vehicle for launch in 2027. 'It is heartening to note that both BEVs and strong hybrids are growing well,' said Rahul Bharti, senior executive officer at Maruti Suzuki. 'SHEVs (strong hybrids) also enhance energy efficiency and reduce CO2 significantly over pure petrol/ diesel vehicles.'Mahindra also is planning to drive in a hybrid version of XUV 3XO, a senior industry executive aware of the company's plans said.
Economic Times
8 hours ago
- Economic Times
Indians on the hybridge to electric future: Hybrid cars demand surges at a pace similar to EVs despite fewer options
TIL Creatives Representative Image New Delhi: Demand for strong hybrid cars is growing at a pace similar to electric vehicles (EVs) despite limited offerings, and government incentives promoting the latter, prompting carmakers to line up more hybrid models to meet increasing customer demand amid high fuel prices. There are only about five strong hybrid models on sale in the country, compared to 15 EVs. Yet, both segments grew about 18% year-on-year in FY25, with hybrids emerging as a practical, fuel-efficient alternative while pure electric adoption slowed amid continuing infrastructure bottlenecks. Automakers are creating more room for hybrids in their emissions compliance strategies ahead of stricter fuel-efficiency rules set to kick in from April 1, 2027. From Maruti Suzuki to Hyundai Motor India and Mahindra & Mahindra, they are gearing up to launch more than half a dozen hybrid vehicles over the next two years. 'Interestingly, automakers that previously dismissed hybrids are now actively evaluating or developing hybrid models for India,' said Gaurav Vangaal, associate director at S&P Global Mobility. 'This shift reflects evolving market dynamics and growing consumer interest, which, month after month, is increasingly steering the industry toward hybrid technology.' According to the industry, more than half of the sales of Toyota Innova Hycross and Urban Cruiser Hyryder now come from strong hybrid Suzuki offers only a strong hybrid version of the Invicto MPV. At Honda, the share of strong hybrid in City sedan sales has increased to almost 15%, up from 9-10% after launch. 'With the upcoming implementation of CAFE 3 norms, we can expect a surge in launches across both hybrid and electric powertrains,' said Vangaal of S&P. The government is in the process of formulating the third edition of the Corporate Average Fuel Efficiency (CAFE 3) norms. Under CAFE, fuel consumption and emission targets apply to the overall fleet of a carmaker, including EVs and hybrids, rather than individual models. This gives manufacturers leeway to sell larger, less efficient vehicles as long as their cleaner models offset the impact on overall fleet emissions. Fuel-wise vehicle sales data collated by industry body Society of Indian Automobile Manufacturers (SIAM) show hybrid vehicle sales rose 18% year-onyear to 105,000 units in FY25. Electric vehicle sales, too, grew at a similar pace to 118,000 units, largely driven by new, more affordable models introduced by Tata Motors, JSW MG Motor and M& of petrol vehicles, meanwhile, dipped by 6.6% to 2,482,000 units. Industry watchers said the pace of growth in EV sales has moderated (from about 90% in FY24) despite central and state governments lining up several incentives — from reduced GST rate of 5%, waiver of registration charges and road taxes, and income tax benefits to enthuse customers to shift to EVs. They mostly blame it on the lack of adequate charging infrastructure. Thus, buyers looking to save on fuel costs are increasingly opting for strong hybrid HYBRIDSWhile Maruti Suzuki is set to take the covers off a hybrid SUV (codenamed Y17) ahead of the festive season this year, its Korean rivals Hyundai and Kia are set to drive in their first strong hybrid models next year, industry insiders MG Motor is examining plug-in hybrid vehicles for launch in India. Industry insiders said homegrown M&M, which so far has been betting big on born EVs, too, is developing a strong hybrid vehicle for launch in 2027. 'It is heartening to note that both BEVs and strong hybrids are growing well,' said Rahul Bharti, senior executive officer at Maruti Suzuki. 'SHEVs (strong hybrids) also enhance energy efficiency and reduce CO2 significantly over pure petrol/ diesel vehicles.' Mahindra also is planning to drive in a hybrid version of XUV 3XO, a senior industry executive aware of the company's plans said.
