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Hyundai Motor India Volume Growth Seen Strengthening From Second Half FY27
Nomura expects Hyundai Motor India to see stronger volume growth from the second half of FY27, supported by new product launches and a recovery in volumes. The brokerage expects EBITDA margins to recover to 11% to 14% and maintained its Buy rating on the company.
By Finblage Editorial Desk
4:20 pm
24 August 2026
Nomura expects Hyundai Motor India to witness a stronger volume growth trajectory from the second half of FY27, supported by new launches and improving demand. The brokerage said the company remains confident of achieving 8% to 10% volume growth in FY27 across domestic and export markets, while targeting a market share of more than 15% by FY30.
According to Nomura, Hyundai Motor India saw a recovery in volumes during the second quarter following disruptions in the first quarter. The brokerage expects new product launches planned for the second half of FY27 to further support the company's volume performance.
Hyundai Motor India plans to introduce 26 new products between FY26 and FY30. The upcoming launches include a mid size internal combustion engine SUV during the festive season and a compact electric SUV after the festive season in FY27. The company does not plan to introduce hybrid models over the next one to two years, although it aims to have five to six hybrid products by FY30.
The company is also expanding manufacturing capacity at its Pune plant. Hyundai Motor India plans to add 150,000 units of capacity, taking its total production capacity to 1.1 million units by CY30. Capacity at Pune is expected to increase from around 120,000 units currently to approximately 170,000 units by October 2027.
On profitability, Hyundai Motor India has announced price increases of up to 1% from September 2026 and plans to manage discounts amid continued cost pressures. Management has retained its FY27 EBITDA margin guidance of 11% to 14%. Nomura also noted that the company does not expect any change in its royalty rate.
Nomura estimates Hyundai Motor India's domestic volumes to grow at a compound annual growth rate of 11% between FY26 and FY29. The brokerage forecasts EBITDA margins of 11.5% in FY27, 12.7% in FY28 and 13.4% in FY29, which it expects to support an EPS CAGR of 26% over FY27 to FY29.
Nomura maintained its Buy rating on Hyundai Motor India, citing improving volumes, new product launches and an expected recovery in margins as key factors supporting its outlook.
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