Hyundai Motor India's Profits Dip Amid Geopolitical Challenges

Hyundai Motor India reported a 19% decline in profit after tax for the third quarter due to subdued demand and geopolitical factors. The company sold 1,86,408 passenger vehicles, a 2% decrease from the previous year, with strong SUV sales. Hyundai is focusing on EV and CNG growth.

Hyundai Motor India announced a 19 percent drop in its consolidated profit after tax, totaling Rs 1,161 crore for the third quarter ending December 31, 2024. This decline is attributed to subdued demand and geopolitical factors, compared to Rs 1,425 crore in the same quarter last fiscal year.

Total revenue from operations fell to Rs 16,648 crore during the third quarter, down from Rs 16,875 crore in the prior year. The company attributed the margin declines primarily to these challenging external factors, with Hyundai Motor India's Managing Director, Unsoo Kim, expressing confidence in leveraging strengths to improve future volumes and profitability.

A total of 1,86,408 passenger vehicles were sold within the quarter, marking a dip from 1,90,979 units the previous year. Hyundai achieved its highest-ever 15 percent CNG penetration. In rural sales, the company revealed a growth in penetration to 21.2 percent. Looking forward, Hyundai is committed to boosting electrification with the recent launch of the Creta Electric, alongside infrastructure development and a diverse portfolio expansion.

(With inputs from agencies.)