Hyundai Motor India FY27 Sales Growth Forecast Retained Amid Production Recovery

Hyundai Motor India Retains FY27 Growth Guidance Despite Lower Q1 Volumes

Hyundai Motor India FY27 Sales Growth Forecast remains unchanged at 8-10% despite lower overall volumes during the April-June quarter. The automaker reported that supplier-related production disruption has largely been resolved and demand remains strong ahead of the festive season. Hyundai Motor India sold 178,082 vehicles during the first quarter of fiscal 2027, compared with 180,399 units in the same period last year. Domestic sales increased 5.4% to 139,374 units, while exports declined nearly 20% to 38,708 units due to production constraints and overseas market challenges.

Managing Director Tarun Garg said the quarter started with strong momentum before a supplier facility fire affected production capacity in June. The company stated that sales growth in April and May reached 13% year-on-year, supported by favourable demand conditions and strategic product actions. However, the temporary production disruption limited the company's ability to fully meet market demand during June, resulting in lower-than-expected domestic volume growth for the quarter.

Production Recovery Progresses Faster Than Initial Expectations

Hyundai Motor India confirmed that most of the lost production has already been recovered in July, ahead of the earlier recovery timeline. The company had initially expected production recovery during the second quarter of fiscal 2027, but the recovery process advanced faster than planned. Management stated that approximately 13,900 vehicles were impacted due to the disruption, with most recovered in July and the remaining production expected to be addressed during the second quarter.

The automaker also maintained its profitability outlook despite lower first-quarter margins. EBITDA margin declined to 9.3% during the April-June quarter from 13.3% in the previous year. Tarun Garg stated that margins are expected to improve as production normalises, plant utilisation increases and operational efficiency strengthens. The company remains confident of achieving its guided EBITDA margin range of 11-14% for fiscal 2027.

Exports Impacted by Geopolitical Challenges and Production Constraints

According to management, export performance was affected by geopolitical conditions, particularly the Iran-Israel conflict, which impacted shipments to the Middle East market. India-based production operations faced additional pressure due to temporary supply disruption during June. Despite these challenges, Hyundai expects exports to recover as production stabilises, order backlogs are fulfilled and portfolio expansion continues across international markets.

The company expects strong recovery in overseas volumes from the second quarter onwards, supported by healthy backorders, resilient operations and continued product expansion. Hyundai maintained its full-year growth guidance, citing production normalisation, demand momentum, upcoming festive season sales and planned vehicle launches as key drivers for future performance.

New Vehicle Launches and Capacity Expansion to Support Growth

Hyundai is relying on upcoming product launches and additional manufacturing capacity to support growth during the remainder of fiscal 2027. The company plans to introduce a new internal combustion engine mid-size SUV during the festive season, followed later by a dedicated electric vehicle positioned in the Venue segment. These launches are expected to strengthen Hyundai's passenger vehicle portfolio and support future market expansion.

The automaker will begin third-shift operations at its Pune manufacturing facility from October, advancing its capacity ramp-up plan by nearly two years. Tarun Garg stated that the expanded capacity will help meet increasing customer demand and accelerate business growth. The additional production capability will support both domestic sales and exports, including shipments of the new Venue to approximately 35 global markets.

Frequently Asked Questions

What is Hyundai Motor India’s FY27 sales growth target?
Hyundai Motor India expects 8-10% volume growth in fiscal 2027 despite temporary production challenges during the first quarter. The company remains confident due to production recovery, strong customer demand, festive season momentum and upcoming vehicle launches. Management also expects export volumes and profitability to improve as manufacturing operations normalise and additional capacity becomes available.