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Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs
Automobile News, Autos, Equities, Markets - January 30, 2025

Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs

Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs

Overview
On 28th January 2025, Hyundai published its third quarter reports of the financial year 2025 recording a contraction of 19 percent of consolidated net profit on a year-on-year basis. The PAT for the third quarter was about Rs.1,161 crore lower than the Rs. 1,425 crore for the previous financial year in the third quarter only. The reason for this is the fall in exports and sales at domestic level.

Performance of the company
In the third quarter of the financial year 2025, the company recorded a fall in total income to about Rs. 16,892 compared to its total income of about Rs. 17,244 crore in the same quarter of the previous financial year.

The company is popular for manufacturing hatchback models such as i20, Grand i10. It is also known for manufacturing Creta, which is a SUV model. In the third quarter of the financial year 2023-2024, the revenue of Hyundai was about Rs. 16,875. In the third quarter of the current financial year, it declined to about 1.3 percent which accounts to about Rs.16,648 crore of revenue.

After its earnings report was released, the stock price of Hyundai Motor declined.

Further, the company recorded a contraction in net profit by about 16 percent consecutively. Its net profit was about Rs. 1,375 crore in the second quarter of the financial year 2025. Also, its topline was about Rs. 17,260 crore in the second quarter which declined to about 3.5 percent in the third quarter of the current financial year.

While, its EBITDA margin was around 11.27 percent in the third quarter lower than 12.88 percent in the previous year of the same quarter. The reason for contraction in margins is due to slowdown in demand as well as rising geopolitical concerns.
Sales performance of the company
In terms of volume, Hyundai Motors was successful in selling about 1,86,408 units of passenger vehicles in the third quarter. From this total volume sales of passenger vehicles, volume sales in the domestic market was about 1,46,022 units. It is mainly driven by demand for SUV vehicles.

The company was also able to register its highest sales of CNG-based vehicles in terms of volume which accounts to growth of about 15 percent in the third quarter compared to 12 percent in the past financial year of the same period.

In terms of sales volume in rural areas, it surged to about 21.2 percent in the third quarter, higher than 19.7 percent recorded in the same quarter of the previous financial year. Also, the exports level of the company was recorded to about 40,386 units of sales volumes in the third quarter.

Future Perspective of the company
Hyundai Motors firmly believes that it will be able to expand its future growth by using its full potential and also search for new opportunities to expand profitability and sales volume of the company.

The company is optimistic about the development of the Electric vehicle segment in India. It is taking steps towards making electric vehicles with a broader view.

The company also states that the recent launch of Creta Electric model will promote growth and also acts as a breakthrough in the Electric vehicle sector.

The image added is for representation purposes only

India’s export in auto industry reach 19 percent

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Autos, Business, Equities, Markets - January 15, 2025

Strong Consumer Sentiment Boosts Automobile Dispatches by 12% in 2024

Strong Consumer Sentiment Boosts Automobile Dispatches by 12% in 2024

Due to strong consumer sentiment that supported the strong demand for two-wheelers, automobile dispatches from firms to dealers increased by 12% last year compared to 2023, the industry group Society of Indian Automobile Manufacturers (SIAM) said on Tuesday. In 2024, total wholesales across all categories increased by 11.6% to 2,54,98,763 units from 2,28,39,130 units in 2023.

2024 has been a rather excellent year for the auto sector, according to a statement from Shailesh Chandra, President of the Society of Indian Automobile Manufacturers (SIAM). He added that the macroeconomic stability of the nation and favorable consumer attitudes contributed to the sector’s reasonable development across all vehicle segments.

Two-wheeler segment was the growth driver
According to SIAM, the two-wheeler segment was the main driver of last year’s growth, increasing by 14.5 percent in 2024 compared to the previous year. When compared to previous year’s dispatch of scooter, bike, and model figures, 2024 witnessed a hike of about 14.5% in 2024. Previously the figure dwelled at 1,70,75,432 units in 2023 but now has improved significantly to 1,95,43,093 units. Further, scooter sales have improved and increased to a healthy 20% year on year in 2023. Coming to motorcycle dispatches, there is a 12% bump year on year when compared to the previous year figures.

Passenger vehicle and three-wheeler segment saw a significant hike in sales
With sales of almost 43 lakh units, passenger cars increased by 4% in 2024 over 2023, as per the SIAM report. In a similar vein, three-wheelers saw a 7% increase in 2024, selling 7.3 lakh units. Though there are indications of improvement in the third quarter of 2024–2025, commercial vehicles saw a minor decline of 3% in 2024 compared to the previous year, with sales of 9.5 lakh units. When compared to last year’s figures, passenger car dispatches to dealers saw a significant uptick of about 10% in December of last year, compared to 2,86,390 units in December of 2023.

Further, dispatches of three-wheelers increased from 50,947 units in December 2023 to 52,733 units last month. According to SIAM Director General Rajesh Menon, passenger cars, commercial vehicles, and three-wheelers recorded their highest-ever sales in the October–December quarter. According to him, passenger car sales in the third quarter of 2024–2025 increased by 4.5% to 1.06 million units, up from the previous year.

Additionally, two-wheeler dispatches increased by 3% in the third quarter of 2024–25 compared to the same period last year, registering sales of 4.9 million units, while three-wheeler sales increased somewhat, reaching 1.89 lakh units. Finally commenting on commercial vehicle sales in this quarter, Menon added that the sales of commercial vehicles increased slightly by 1% when compared to the same period last year.

Major Trends in the automobile industry
With 2.5 crore cars sold last year (four-fifths of which were two-wheelers) and a comfortable growth rate of 11.6%, the Indian auto industry appears to be unaware of the economy’s problems or even the EV juggernaut. In fact, the number of sports utility vehicles (SUVs), the most aspirational category, has increased by about 17%, from 23.5 lakh to 27.5 lakh.

Nevertheless, the fall has greater consequences for the automakers than the rise. Perhaps more intriguing than the rise in SUV sales is the segment at which this surge has occurred: sedans. Traditionally, the auto industry’s poster boys, the standard sedan and small vehicles (hatchbacks), have suffered the most since SUVs have become the preferred choice for consumers. As a result, the number of passenger automobiles sold fell from 16 lakh in 2023 to just 13.7 lakh last year, a 14.4% decrease.

Motorcycles are another traditional category that is struggling with change. Although it ended the year with an 11.9% rise, it is far less than the nearly 20% growth scooters achieved in the same time frame. In reality, motorcycle sales actually decreased by about 2% during last year’s holiday October–December quarter, which is typically the time with the highest sales, while scooter sales increased by 13.6%, from over 15 lakh to 17 lakh.

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