Maruti Suzuki vs Hyundai Motor India Shares: A Q2-FY25 Performance Comparison

India’s automobile sector has witnessed dynamic shifts, with Maruti Suzuki India (MSIL) and Hyundai Motor India (HMI) competing for market leadership. Maruti Suzuki, a long-standing player, is known for its expansive product portfolio and dealer network, while Hyundai Motor India, newly listed on Indian exchanges, has generated significant investor interest due to its technological advancements and premium positioning. 

Both companies, however, faced earnings pressures in Q2FY25, reflecting the broader challenges in the industry.

Q2 FY25 Financial Results

Maruti Suzuki India Limited’s net profit declined by 17% year-on-year (YoY) to ₹3,069.2 crore, while revenue remained flat at ₹37,202.8 crore. The company attributed this to provisions and softening demand, particularly in the small car segment. A slowdown in sales volume affected growth, with domestic sales showing limited improvement over the quarter.

Similarly, Hyundai Motor India Limited reported a 16% YoY drop in net profit for Q2FY25, closing at ₹1,375.47 crore, alongside a 7.5% revenue decline to ₹17,260.38 crore, compared to ₹18,659.69 crore in the previous year. The drop in both domestic demand and export performance impacted Hyundai’s earnings, mirroring the overall market slowdown.

Growth Strategy and EV Plans

While Maruti Suzuki anticipates retail volume to increase by 14% YoY during the festive season and 4% over the fiscal year, the company has long-term plans to strengthen its portfolio. Maruti aims to roll out over 10 new models in the next 6 to 7 years, including 6 electric vehicles (EVs) and hybrid models, positioning itself for growth in India’s emerging EV market.

Hyundai Motor India, in response to shifting consumer preferences, plans to launch a locally-produced electric variant of its popular mid-size SUV, the Creta, in early 2025. This expansion in EV offerings underlines Hyundai’s commitment to innovation, especially as the Indian passenger vehicle sector faces cyclical demand fluctuations compounded by geopolitical pressures.

Maruti Suzuki vs Hyundai Motor India Share Price

As of 2:34 PM on November 14, 2024, Hyundai Motor India share price was trading at ₹1,762.50 on the NSE, up by ₹22.55 (1.30%). Meanwhile, Maruti Suzuki India share price was at ₹11,000.65, reflecting a decline of ₹48.95 (-0.44%).

Conclusion

Maruti Suzuki’s commitment to electric and hybrid vehicles suggests an intent to capture a significant share of the evolving market for sustainable mobility solutions. Hyundai’s upcoming EV version of the Creta marks a strategic move in response to increasing demand for eco-friendly transportation options. 

As both companies continue to innovate and expand their portfolios, their performance will be instrumental in defining the future of India’s automobile market.

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.