Hyundai Share Price in Focus: Here’s Why

Hyundai Motor India Limited (NSE: HMIL) recorded a decline in sales for November 2024, selling 61,252 units across domestic and export markets. This represents a 6.9% drop from the 65,801 units sold in November 2023. A closer look reveals that domestic sales dipped 2.4%, while combined domestic and export sales mirrored the overall decline.

Despite these numbers, Hyundai continues to enjoy a strong presence in rural India. In November, rural sales contributed a remarkable 22.1% to the brand’s total, marking the highest-ever monthly rural contribution for HMIL.

SUVs and CNG Vehicles: Key Pillars of Hyundai’s Portfolio

The SUV segment remains a cornerstone for Hyundai, accounting for 68.8% of its total domestic sales. This dominance highlights the sustained popularity of SUVs in the Indian market. Additionally, the company’s CNG vehicle sales showed promise, contributing 14.4% to its overall sales in November, driven by the innovative Hy-CNG technology.

Price Hike Announcement: What to Expect in 2025

In a recent press release, Hyundai announced a price increase across its model range effective January 1, 2025. The decision stems from rising input costs, adverse exchange rates, and increased logistics expenses. While the company aims to absorb costs wherever possible, the hike—capped at ₹25,000—has been deemed necessary to offset these challenges.

Mr. Tarun Garg, Whole-time Director and COO of HMIL, stated, “Our endeavour is always to absorb rising costs to the extent possible, ensuring minimal impact on our customers. However, with sustained cost increases, a minor price adjustment has become imperative.”

Conclusion

Hyundai Motor India faces a dual challenge of declining sales and rising costs. However, its focus on rural expansion, SUV supremacy, and innovative technologies like Hy-CNG underscores its adaptability. The coming months will reveal how these strategies impact both the brand’s market position and its performance.

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.