Hyundai Motor shares decline almost 4% as company gets tax notice and Feb sales dip; check full details

The automaker on February 28 received an order from the Additional Commissioner, Central GST Department, Tamil Nadu, for the period FY 2020-21 and FY 2021-22, wherein a tax demand has been raised under Section 73 of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017, the company said.

The demand is for an amount of ₹13.46 crore along with a penalty of ₹1.34 crore and applicable Interest, Hyundai Motor India said in a regulatory filing.

"The company will be filing appeals before appellate authorities within the prescribed timelines. There is no impact on financial, operation or other activities of the company due to this order," it added.

At close, shares of Hyundai Motor declined 1.84% to ₹1,698 per share on the National Stock Exchange. However, the scrip extended its loss during the intraday trade. At 12 PM, it was trading at ₹1,663.05 apiece, tumbling 3.86% on the 50-share index. The automaker’s market capitalisation stood at ₹1,37,969.48 crore at the end of the trading session.

Meanwhile, the auto major’s total vehicle dispatches in February declined 3% year-on-year to 58,727 units. The company had sold 60,501 units in February last year.

Hyundai Motor said it dispatched 47,727 units to dealers in the domestic market last month, a drop of 5% as compared with 50,201 units in February 2024.

Export sales stood at 11,000 units as against 10,300 units in the year-ago period.

"On the domestic sales front, despite geopolitical challenges, we remain optimistic that the proposed tax reforms in the Union Budget 2025 and improved liquidity will provide the much-needed demand boost to the market," Hyundai Motor India Whole-time Director and CEO Tarun Garg said.

By optimising exports, the automaker will continue to reinforce the company's position as a key export hub for Hyundai Motor Company, he added.