The South Korean car maker is in the process of reaching 8.5 lakh units in production capacity and the company is also ‘accelerating its EV plan’ to participate in this fast-growing space.
20 Sep 2023 | 18685 Views | By Ketan Thakkar and Shahkar Abidi
Hyundai Motor India has posted its highest ever revenues and profits in India – in its twenty seventh year of operation in the country in the fiscal year 2022-23.
The turnover of the South Korean car maker’s Indian arm has crossed a milestone of Rs 60,000 crore (US$7.2 billion) ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Hyundai Motor India has posted its highest ever revenues and profits in India – in its twenty seventh year of operation in the country in the fiscal year 2022-23.
The turnover of the South Korean car maker’s Indian arm has crossed a milestone of Rs 60,000 crore (US$7.2 billion) for FY23, registering a growth of 27 percent. Profits for the last financial year stood at Rs 4,653 crore (US$550 million), the highest amongst the non-listed automotive companies in the country, growing by over 62 percent.
The rising share of premium vehicles and healthy -capacity utilisation meant; the South Korean chaebol has registered its best ever operating performance yet.
Reviewing the operational performance of FY23, the director’s report noted, “The fiscal year 2022-23 was a busy year for your company. New car models including the Ioniq 5 were launched, production capacity was increased and steps were taken to accelerate growth in the coming years through strategic investments including the proposed acquisition of a production facility.”
The total production of Hyundai Motor India for FY23 was 7.27 lakh units registering an increase of 20 percent. The domestic sales too grew 18 percent in FY23, with almost all its nameplates, Creta, Venue, Alcazar, Tucson, Aura and Grand i10 Nios registering their highest ever annual numbers last financial year. The total sales for the year stood at 5.67 lakh units in FY23.
Much like the overall increase in output, the exports too kept pace and grew 18.4 percent to 1.53 lakh units led mainly by African and Latin American markets.
To the cater to the growing demand and shift towards EVs, Hyundai Motor India is in the process of touching 8.5 lakh units in production capacity and the company is also “accelerating its EV plan” to participate in this fast-growing space, stated the annual report for FY23, sourced the business intelligence platform Tofler.
Hyundai Motor India recently announced Rs 20,000 crore investment in India with a pre-dominant share of it towards electrification. The South Korean car maker has committed to launching five electric vehicles by the end of the decade. This was announced after the recent visit by the Hyundai Motor Groups’ Chairman in India in August.
AI and Digitalisation to help increase productivity
The company is in the process of increasing the production capacity to 8,50,000 units per annum to meet the market demand by further automating certain processes and increasing the number of shifts working, thereby increasing the units per hour to 58 led by advanced technologies like Artificial Intelligence and Digitalisation to enable the transformation of the entire factory to a Smart Factory.
“These measures will enhance the efficiency, boost productivity and bring about effective engineering and development of new products in line with our vision of Progress for Humanity,” claimed the company in its annual report.
India an outperformer
The director’s report stated that the Indian economy grew at a pace faster than expected in the fiscal year ended March 2023, thereby cementing its position among the fastest-growing economies in the world.
“The economy grew 7.2 percent in 2022-23 (April-March), which is higher than the government's earlier estimate of 7.0 percent but much lower than the growth rate of 9.1 percent in the previous year. The growth has been primarily led by the services sector and agriculture. In nominal terms, without adjusting for inflation, GDP rose 16.1 percent in FY23 as compared with 18.4 percent expansion in the preceding year.”
Specifically on the Indian Auto Industry, the director’s report noted that the auto industry performed exceedingly well in FY23. Total passenger vehicle (PV) sales increased from 3.07 million units to 3.89 million units. The largest contribution to the PV segment in FY23 was made by utility vehicles (SUVs), which accounted for a 51 percent share.
“Major automakers registered record sales in the domestic market. The steep growth witnessed by the industry in FY23 was driven by post-Covid-19 pent up demand in the early part of the year, new models and vehicles launched during the year and the easing of the semiconductor shortage,” added the note.
The country was the third biggest market for Hyundai Motor Group, after the US and South Korea in the last calendar year.