SUV Boom Drives Hyundai's Record Growth: Rural Sales and Profits Hit All-Time High

Hyundai Motor India Limited (HMIL) has reported a stellar performance in the second quarter of FY 2025-26, fueled by strong SUV demand and record rural sales. The company’s growing footprint across towns and villages has helped it achieve new milestones in both domestic and export markets.

Rural Sales at an All-Time High
Hyundai’s rural market contribution climbed to 23.6%, the highest in its history — proof that the automaker’s cars are reaching deep into India’s smaller towns and villages. At the same time, SUVs accounted for 71.1% of Hyundai’s domestic sales, another record high that underscores the strong preference for larger, feature-rich vehicles among Indian buyers.

Festive Demand Boosts Growth
The company’s domestic sales rose 5.5% quarter-on-quarter, driven by festive season demand and the boost from GST 2.0, which spurred consumer spending. Hyundai’s export performance also remained robust, growing 21.5% year-on-year and accounting for 27% of total sales.

Strong Financials
Hyundai reported revenues of ₹174,608 million, up 1.2% from the previous year. EBITDA rose 10.1% to ₹24,289 million, with margins improving by 113 basis points to 13.9%. The company attributed its profitability to a better product mix, higher export contribution, and continued cost optimization.

Profit After Tax (PAT) also jumped 14.3% to ₹15,723 million, reflecting the strength of Hyundai’s growth strategy.
In a statement, the company said, “This quarter, we performed well across all key financial parameters. Our strong EBITDA margins of around 14% reflect the success of our quality growth approach.”