Hyundai Motor India's Q2FY25 profit drops 16.5% to Rs 1,338 cr
Mumbai: Hyundai Motor India, India’s second-largest automaker by market share, reported a 16.5% drop in quarterly profit, attributed to weaker domestic sales and export disruptions from Red Sea tensions, Reuters reported.
The manufacturer of the ‘Creta’ SUV announced standalone profits fell to Rs 1,338 crore ($158.6 million) for the second quarter ending September 30, down from Rs 1,602 crore in the same period last year.
Hyundai, holding a 15% market share behind Maruti Suzuki’s 41%, cited sluggish demand in India for a 6% decline in local sales, while exports dropped 17% due to Red Sea area disruptions.
Attacks by Houthi rebels on Red Sea vessels since late 2023 have strained global trade and supply chains, causing ships to reroute around Africa’s Cape of Good Hope.
In India, July-to-September car sales declined for the first time in ten quarters, weighed down by poor demand for small cars and slower SUV sales growth, affecting both Hyundai and Maruti.
Maruti, which focuses on small cars, last month reported its slowest quarterly revenue growth in nearly three years.
Hyundai’s total revenue for the quarter dropped 7.5% to Rs 16,961 crore as sales volumes, including exports, decreased by about 9%. SUV sales, making up roughly 60% of Hyundai’s total volume, declined slightly by 0.5%.
Hyundai, which went public in October after a $3.3 billion IPO—the largest in India’s history—remains optimistic about steady demand for cars in the medium to long term.
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