Hyundai Motor India shares fall over 1.5% as it plans to become top manufacturing hub for emerging market exports

Hyundai Motor India shares slipped as much as 1.5% on Thursday, February 20, as a top executive of the auto manufacturer said it is looking to position itself as a manufacturing hub for exports for emerging markets like Africa and neighbouring nations.

During the intraday trade, shares of the company was trading at ₹1,849.05 on BSE, falling 1.50%. At close, the scrip tanked 1.16% settling at ₹1,855.40 apiece.

The company, which is looking to diversify its export markets as it continues to face challenges regarding shipments to regions like the Middle East due to the Red Sea and other geopolitical issues.

He noted that the automaker has a balanced mix of domestic and export volume, which gives it not only good profit but also a natural hedge against any market fluctuation.

"We have a very suitable product line-up for emerging markets," Kim said.

Hyundai witnessed growth in almost all regions, like Africa, Mexico and Latin America, he said.

"However, the Middle East continued to face headwinds due to the Red Sea crisis. We will be closely monitoring the situation and will also plan to mitigate the risk by focusing on other regions," Kim said.

The company also looks to enhance its exports to neighbouring countries like Nepal, Bangladesh, Bhutan and Sri Lanka.

"Going forward, we expect stability in our export volumes, and with our access to the export ecosystem of HMC, we will continue to explore opportunities in other emerging markets and deliver exciting products," Kim said.

In the October-December quarter this fiscal year, Hyundai exported 40,386 vehicles, as compared to 43,650 vehicles in the same quarter last year.

In CY 2024, Saudi Arabia, South Africa, Mexico, Chile and Peru emerged as the largest export markets for the company by volume.

Hyundai exported a total of 158,686 vehicles in CY 2024.

This month, the automaker completed 25 years of exports from India.

Commencing exports in 1999, Hyundai Motor India has exported over 3.7 million passenger vehicles to date.

Over the last 25 years, it has exported passenger vehicles to over 150 nations across the globe and currently exports to over 60 countries.

"Aiming to become the largest export hub for Hyundai outside South Korea, we aspire to continue our growth trajectory in the coming years," Kim stated.

Hyundai Motor India had reported an 18.5% decline in its consolidated net profit at ₹1,160.7 crore for the quarter ended December 31, 2024 (Q3 FY25). The company had registered a profit of ₹1,425.22 crore in the year-ago period.