The Economic Times (India)
Hyundai India expects exports to recover
New Delhi, Hyundai Motor India Ltd expects a strong recovery of its exports volumes from the second quarter of the ongoing fiscal year on the back of continued robust demand and a healthy order backlog across key markets, according to its Managing Director and CEO Tarun Garg.In the first quarter, Hyundai Motor India Ltd (HMIL) had witnessed a decline in its exports impacted by the West Asia war and temporary production disruption due to a fire incident at the facility of one of its suppliers, Mobis.The company's exports were down 19.6 per cent at 38,708 units in Q1 FY27 as compared to 48,140 units in the corresponding period last fiscal."The US-Iran conflict, which started towards the end of last financial year, continued to impact our Middle East exports during Q1 FY27. Further, export volumes were also affected by the temporary production disruption in June," Garg told analysts.However, he added, "The underlying fundamentals of our export business remain strong. We continue to maintain a healthy order backlog across key markets, and customer demand remains robust."Garg further said, "Supported by healthy backorders, continued portfolio expansion, and our resilient operations, we expect strong recovery in export volumes from Q2 onwards and remain confident in delivering our stated full-year (overall) growth guidance of 8 per cent to 10 per cent."Elaborating on the reasons for the company's bullish outlook on exports, he said, "The new Venue continues to receive an encouraging response in export markets as well. We have also started shipments for Verna PE and Exter PE, including the left-hand-drive (LHD) version of Exter. These models should further strengthen our product offerings and competitiveness in export markets."The new Venue, already present in 29 markets, has "started giving orders, and we are planning for 35 total markets in the near future", he noted.The Exter LHD, which HMIL has launched for the first time, is starting shipment in this quarter (2nd), Garg said, adding, "We will reach 13 markets by quarter 3, and Verna PE also from June we have started, and will reach more than 25 markets by Q3."Yet, Garg noted that the challenges on freight through the Strait of Hormuz are still continuing."At the same time, with our logistics partner, we are finding ways....things are opening up from the Middle East in terms of orders, and the fire incident is behind us, and we have been able to do (ramp up) the production," he said.On Mexico, he said although there were challenges because of tariffs, it's still holding on."We are receiving some good orders from Mexico as well. The efforts done in Central and South America (CSA) in January to March quarter and April to June quarter will hold us in good stead going forward, because of which in Q1, we witnessed 23 per cent year-on-year growth in CSA, and the demand remains steady in these markets," Garg noted.Asked if the company could recover its exports to the Q1FY26 level of around 48,000 units in a quarter, Garg said, "Our aspirations are much higher. We expect to do better than a 48,000-unit quarter in the coming quarters on the export front."
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