Elara Securities

Target: ₹2,390

Hyundai Motor India (HMIL) remains a key player in India’s highly concentrated passenger vehicle (PV) market where the top six companies account for more than 90 per cent volume.

Its market share fell in FY26, mainly due to a lack of new product launches and tougher competition in the mid-size and compact SUV segments.

After ceding the No 2 position to M&M in FY26, HMIL is rolling out new product plans across the domestic and export markets.

HMIL’s phased expansion at the Talegaon facility in Pune should lift total capacity to 1.14 million units by FY30E, underpinning volume growth and market share recovery.

Near-term headwinds include likely OEM price hikes by about 3 per cent (our assumption) to offset sharp RM inflation and a petrol price increase (assuming 5 per cent).

HMIL targets exports volume growth of 8-10 per cent for FY27 despite near-term headwinds due to the West Asia crisis, which accounts for 40 per cent of its exports volume.

The new Venue commenced exports in Q4FY26, and the management has confirmed plans for theVerna and the Exter — moves that should strengthen exports. The management aims to lift exports to 30 per cent of production by FY30, led by new launches and wider penetration of emerging markets. 

Despite short-term industry headwinds, we expect sustained demand driven by strong launch pipeline, resilient exports growth and HMIL’s track record in defending market share. We initiate with a Buy rating and a TP of ₹2,390 on 26x June 2028 P/E.

Published on June 17, 2026