Hyundai on track to smash FY26 export goals, India emerges key global hub

Hyundai Motor India said it is on track to exceed its export targets for fiscal year 2026, adding heft to the carmaker's efforts to build the country as its global export hub, while also beating second-quarter profit views on Thursday.

The automaker, India's third-largest by sales and second-largest by exports, plans to make the country a global export hub, targeting 30% of local output for overseas markets by 2030.

While domestic demand remained sluggish in the quarter, echoing a broader slowdown in India’s auto sector, exports remained a bright spot, surging 21.5% from a year earlier.

"Our strong export performance is set to surpass FY26 targets," MD Unsoo Kim said in a statement. Hyundai had aimed for 7–8% export growth this fiscal, with the Middle East and Africa among key markets.

Shares of the company rose 2.4% after the earnings report.

The company sees further room to grow its SUV share in the country, helped by government's tax reforms, incoming MD and CEO Tarun Garg said in a post-earnings call.

Garg said rural demand was improving, boosted by the tax reforms, with SUVs' contributions from rural markets slightly higher compared to urban this quarter.

Hyundai is also stepping up cost-saving measures as expenses from its new Pune plant are expected to weigh on near-term margins, Kim said, without specifying the initiatives.

The Indian unit of South Korea's Hyundai Motor reported a 14.3% rise in consolidated profit to 15.72 billion rupees (nearly $179 million) for the quarter, beating analysts' estimates of 14.95 billion rupees, per data compiled by LSEG.

SUVs, which carry higher margins, made up 71% of Hyundai's total sales volume, up from 69% a year earlier.

Hyundai had announced a $5 billion investment over five years to expand its India portfolio with hybrids, EVs, and its luxury brand Genesis.

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