Hyundai India Plans ₹7,500 Crore Investment Amid Declining Q4 Profits
Hyundai India plans ₹7,500-cr capex for FY27 as Q4 net falls
The Economic TimesImage: The Economic Times
Hyundai Motor India aims to invest ₹7,500 crore in capital expenditure for FY27, introducing two new vehicle models to meet rising demand. Despite a 23% drop in Q4 net profit to ₹1,221 crore, the company anticipates 8-10% growth in domestic sales and exports this fiscal year.
- 01Hyundai India plans a ₹7,500 crore capital expenditure for FY27.
- 02The company will launch a new mid-size SUV and a localized electric compact SUV.
- 03Q4 standalone net profit fell by 23% to ₹1,221 crore.
- 04Domestic sales and exports are expected to grow by 8-10% in FY27.
- 05Hyundai's Pune facility will expand by 70,000 units, increasing total capacity to 1.14 million by 2030.
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Hyundai Motor India has announced a significant capital expenditure plan of ₹7,500 crore for the fiscal year 2027, aiming to introduce two new models: a mid-size SUV and a localized electric compact SUV. This move comes as the company seeks to leverage the increasing demand following recent tax cuts. Despite these ambitious plans, Hyundai reported a 23% decline in standalone net profit for the fourth quarter, totaling ₹1,221 crore, down from ₹1,582 crore in the same quarter last year. Revenue from operations increased by 5% to ₹18,452 crore. The company's earnings before interest, tax, depreciation, and amortization (Ebitda) fell 22% to ₹1,966 crore, leading to a contraction in Ebitda margin to 10.4%. For the fiscal year ending March 31, Hyundai recorded a 4% decrease in net profit at ₹5,431 crore. However, the company achieved its highest-ever quarterly domestic sales in Q4, aided by a reduction in goods and services tax (GST) and strong export performance, which grew 9% in Q4 and 16.4% for the full year. Additionally, rural market penetration reached a record 25%, and CNG vehicle contributions hit an all-time high of 18%.
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Hyundai's investment and new model launches could lead to more job opportunities in manufacturing and increased vehicle options for consumers in India.
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