Export Optimism Lifts Hyundai Motor Share Price. What’s Next?

India’s benchmark indices have been closing in green for the past couple of trading sessions. 

Thanks to the easing RBI policy and the progress in US-India trade talks, the Nifty 50 index has reached an eight-month high, while the BSE Sensex has climbed to 82,400 levels.

Alongside the rally in the overall market, a stock that has caught investor’s attention is Hyundai Motor. Hyundai Motor share price has crossed its IPO price for the first time since listing. 

So, what’s driving the rally? Can the rally pick up momentum? Let’s take a closer look… 

Hyundai Motors Share Price Performance

Hyundai Motor India’s share price has declined post its IPO following the expiry of the lock-in period. However, its recent quarterly earnings and the end of the lock-in period have contributed to the stock’s recovery from its earlier lows. 

As of June 9, 2025, the stock reached an intraday high of ₹1984.8 and closed nearly 6% higher at ₹1947.1 on the NSE. 

Why Hyundai Motor Share Price is Rising

From the looks of it, the rally is driven by a confluence of operational, strategic, and macroeconomic factors, including:

1. Optimism Around Export Growth

Hyundai Motor India’s management stated that it expects export volumes to grow by 7–8% in FY26, citing consistent export momentum in recent months. The company aspires to become Hyundai’s largest export hub outside South Korea.
Source: Mint 

2. Strong US Sales Momentum

Hyundai Motor America reported an 8% year-on-year increase in total sales for May 2025, reaching 84,521 units. Several models, including the Venue, Elantra N, Santa Fe, Tucson, and Palisade, recorded their best-ever May sales. May also marked Hyundai’s highest-ever hybrid and electrified vehicle sales in the U.S., with hybrid sales rising by 5%. Additionally, the brand surpassed 17 million cumulative vehicle sales in the US since its market entry in 1986.

Source: Hyundai Motors Press Release

3. Reclaiming Market Share in India

In the domestic passenger vehicle segment, Hyundai reclaimed the third position in May 2025 by outselling Tata Motors, a reversal of its previous three-month underperformance. Despite a temporary production dip due to its scheduled maintenance shutdown in Chennai, Hyundai’s May sales stood at 43,861 units, outpacing Tata’s 41,557 units.

4. Positive Sales Momentum in the EV Segment

According to reports, electric car sales in India rose 55% year-on-year in May 2025, with Hyundai’s e-Creta cited among the top-performing models. EV penetration increased to 4.1% in May 2025 from 2.6% in May 2024. Hyundai was mentioned among the companies gaining ground in India’s expanding EV market.

Source: ET

5. Domestic and Global Operational Updates

While Hyundai Motor India’s overall sales volumes declined slightly in May 2025 due to scheduled maintenance at its Chennai facility, the company stated it continues to see consistent growth in exports. Hyundai Motor Company globally reported a record revenue of KRW 44.41 trillion in Q1 2025, a 9.2% year-on-year increase, alongside a 38.4% rise in sales of electrified vehicles.

6. Corporate Investment in Renewable Energy

On June 7, 2025, Hyundai Motor India announced the release of ₹165.8 crore as the first tranche in its planned ₹380.5 crore investment in FPEL TN Wind Farm Private Ltd. The stake acquisition marks a step toward long-term energy cost optimisation and sustainability, as part of its broader green strategy. 

Source: ET

7. Product Pipeline and Capacity Expansion

Hyundai has outlined plans to launch 26 new products in India (including facelifts) by FY2030, comprising 20 ICE vehicles and 6 EVs. The company is also preparing to operationalise its new manufacturing facility in Pune, which may expand production capabilities in both domestic and export segments.

8. Shareholder-Oriented Announcements

At the group level, Hyundai Motor Company increased its quarterly dividend to KRW 2,500 per share in Q1 2025 and reaffirmed its commitment to cancelling 1% of outstanding shares. The company also announced a $21 billion investment plan in the US between 2025 and 2028, including capacity expansions and technology developments across EVs, AI, and autonomous mobility.

The mentioned updates are backed by a strong financial performance in Q1 2025.

Overview of Hyundai Motors

Founded in 1967, Hyundai Motor Company (HMC) is a South Korea-based global automobile manufacturer operating in over 200 countries with a workforce exceeding 120,000. It is the sixth-largest automaker in the world by production volume, ahead of brands like Nissan and Honda.

Hyundai’s vehicles are sold in 193 countries through approximately 5,000 dealerships and showrooms. The company’s manufacturing network includes the world’s largest integrated auto plant in Ulsan, South Korea, and major production facilities in the United States. 

The Hyundai Motor Group structure includes a 33.88% stake in Kia Corporation and full ownership of Genesis, its luxury vehicle brand. This enables a broad product portfolio spanning sedans, SUVs, hatchbacks, vans, pickups, and commercial vehicles. Popular models include the Tucson, Elantra, Creta, Kona, and Santa Fe.

Hyundai invests around 5% of its annual revenue in research and development, operating 12 global R&D centers. 

Financial Snapshot Of Hyundai Motors

Over the past five years, Hyundai Motor Company has delivered steady top-line and bottom-line growth, supported by a strategic focus on electrification, hybrid-led profitability, and global expansion. 

More recently, the company’s quarterly revenue for the March 2025 quarter reached ₹17940.28 crore, and it earned a net profit of ₹1614.35 crore. 

Apart from the profit figures, the other KPIs for FY2025 include:

• ROE: 34.61%
• Debt-to-equity Ratio: 0.05
• Dividend: ₹21
• Net profit margin: 8.11%
• RoCE: 41.15%

What Next?

Hyundai Motor’s recent stock movement reflects a combination of export optimism, improved US and domestic sales, and ongoing investments in electric vehicles, renewables, and capacity expansion. 

The company has also reported consistent financial performance, supported by a strong product pipeline and global operations. 

However, while these developments provide a positive operational backdrop, evaluating the stock’s potential requires a comprehensive analysis of market conditions, valuation, risks, and your individual investment goals. So, it is suggested to back any further steps in adding these shares to your portfolio only after thorough research and analysis of multiple parameters. 

Happy Investing.

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