Hyundai Motor India Gets ITAT Order Reducing Royalty Payment Dispute

Hyundai Motor India Ltd. has received an order from the Income Tax Appellate Tribunal (ITAT) reducing the royalty payment adjustment for FY 2007-08 from ₹86.88 crores to ₹21.83 crore.

Details of ITAT Order

The ITAT partly allowed Hyundai’s appeal, reducing the Transfer Pricing Adjustment for royalty payments made above industry standards during FY 2007-08. The adjustment was reduced from ₹86.88 crore to ₹21.83 crore.

While the company cannot yet determine the full financial impact, the Assessing Officer will issue a “Giving Effect Order” to calculate the liability. Hyundai disagrees with the valuation used by ITAT and is considering further actions.

However, the company believes the order will not significantly affect its financial or operational activities.

Announcement of Price Hike Due to Rising Costs

Last week, Hyundai Motor announced a price hike across its entire vehicle lineup, effective January 1, 2025. The company cited factors such as rising input costs, unfavourable exchange rates, and higher logistics expenses as reasons for the increase. The price adjustment will impact all 2025 models, further influencing the market dynamics.

Expansion of EV Charging Network

Earlier this week, the company announced plans to install nearly 600 fast public EV chargers across India over the next 7 years, with a focus on key highways and major cities. By the end of 2024, HMIL’s DC fast charging network will include over 50 stations. The company’s existing public charging network has already been used by over 10,000 EV customers, contributing to 7.30 lakh units of energy usage. Additionally, the myHyundai app provides access to over 10,000 EV charging points nationwide, reinforcing HMIL’s commitment to sustainable mobility and supporting India’s shift to cleaner energy.

Share Price Performance 

On December 12, 2024, Hyundai Motor India’s share price traded 1.79% lower at ₹1,790.75 at 11:50 AM on the NSE. The stock opened at ₹1,769.05, lower than ₹1,823.40 at the previous close.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.