Why Hyundai Motors Share Price is Falling

The auto sector in India is growing at a rapid pace. Rising disposable income, better road infrastructure, and increasing demand for EVs are driving the industry forward.

Major automakers are expanding their portfolios, introducing new models to capture a larger market share. The government's push for green mobility is also fueling investments in the sector.

Hyundai Motor has been a key player in this space. It is one of India's largest car manufacturers, known for its innovative models and strong brand presence.

The company has a diverse lineup, catering to both budget and premium car buyers. Its focus on technology, design, and customer satisfaction has helped it maintain a strong position in the market.

However, Hyundai Motor's share price is under pressure. It has been on a downward journey, falling nearly 14% in the past month. Investors are concerned about multiple factors affecting the stock's performance.

Let's take a look at the reasons behind this decline.

#1 Decline in Market Share and Retail Sales

Hyundai's sales performance in February showed a significant decline, with the company selling 38,156 units and securing a 12.58% market share. This placed it behind Maruti Suzuki (38.94%), Mahindra & Mahindra (13.15%), and Tata Motors (12.75%), marking a shift in rankings.

In comparison, Hyundai had a stronger position in January, selling 59,858 units with a 12.85% market share, comfortably holding the second spot ahead of Tata Motors (11.57%) and Mahindra (11.14%).

However, the February figures reflect a sharp month-on-month decline of over 21,700 units, or nearly 36%, raising concerns about the company's market standing.

This development is part of an intensifying competition for the number two position in India's passenger vehicle market. While Hyundai has traditionally maintained a firm hold behind Maruti Suzuki, both Tata Motors and Mahindra have aggressively expanded their market presence.

This intensifying three-way contest has added pressure on Hyundai, contributing to the recent decline in its share price.

#2 Weak Quarterly Earnings

For the December 2024 quarter, Hyundai Motor India reported a marginal decline in revenue, falling to Rs 166.5 billion (bn) from Rs 168.8 bn in the same period last year.

The company also posted a 19% drop in consolidated net profit, which stood at Rs 11.6 bn, compared to Rs 14.3 bn in the October-December quarter of the previous year.

The decline in profitability was primarily attributed to subdued demand in the domestic market, lower exports, and geopolitical uncertainties impacting overall performance. The company noted that these factors led to a contraction in margins, further weighing on its financials.

The weaker-than-expected Q3 earnings have added to investor concerns, contributing to a further decline in Hyundai India's stock price as market sentiment remains cautious.

What Next?

Hyundai Motor India plans to accelerate its expansion strategy, with Rs 260 bn allocated to the Chennai plant and Rs 60 bn to the Pune plant.

This investment aims to increase annual production capacity from 824,000 units to 1.1 m units by 2028, catering to both domestic and export markets.

The company is confident about its growth trajectory and is committed to drive long-term value for its stakeholders. It has a positive outlook on growing electric vehicle (EV) penetration in India and is headed towards electrification with a holistic approach.

Despite global challenges, the management affirms the company's strong business fundamentals and is focused on leveraging its strengths while actively exploring opportunities to enhance volumes and profitability.

How Hyundai Motors Share Price has Performed Recently

In the past five days, Hyundai Motors share price is down 3.6%. In the past month its share price tumbled 14%.

Ever since its listing, it has tumbled 11.3%.

The stock touched its 52-week high of Rs 1,968.8 on 22 October 2024 and a 52-week low of Rs 1,551.4 on 18 March 2025.

About Hyundai Motor

Hyundai Motor is part of the Hyundai Motor Group, the third largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales.

The company has been the second-largest auto OEM in the Indian passenger vehicles market for over a decade.

It has also been India's largest exporter of passenger vehicles for almost two decades. Since 1998, Hyundai Motor India has sold nearly 12 million passenger vehicles in India and through exports.

It has a wide service network with over 1,377 sales outlets and 1,561 service outlets across India with a coverage of 957 cities and towns.

The company has a broad portfolio of products across sedans, hatchbacks, and SUVs. It is also expanding its presence in the electric vehicles (EV) segment.

For more details, see the Hyundai Motor company fact sheet and quarterly results.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For a sector overview, read our automobiles sector report.

Happy Investing.

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