Hyundai Motor India Shares Gain on Investment and CEO Announcement

Shares of Hyundai Motor India rose 2.5% on October 15 after the company announced a Rs 45,000-crore investment plan and appointed Tarun Garg as its new chief executive officer (CEO). The positive market reaction reflects investor confidence in the company’s growth strategy and leadership transition.

Tarun Garg Becomes First Indian CEO

Tarun Garg, an insider at Hyundai Motor India, has been named CEO, becoming the first Indian to lead the automaker’s India operations. The appointment represents a key leadership milestone for Hyundai, which has been operating in India since 1996.

The company has highlighted Garg’s experience and long tenure within Hyundai as a factor in ensuring continuity in strategy and operations. This leadership change comes alongside the announcement of a significant investment plan aimed at expanding both manufacturing and research capabilities in India.

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Rs 45,000-Crore Investment Plan

Hyundai Motor India has unveiled a Rs 45,000-crore investment plan, which will be directed toward expanding the company’s manufacturing and research capacity. The investment plan aims to support Hyundai’s vision for strong growth over the next five years and to maintain competitive positioning in India’s automotive sector.

The company expects to maintain an EBITDA margin of 11–14% between FY26 and FY30, demonstrating a focus on operational efficiency and profitability alongside growth.

Revenue projections for the period indicate Hyundai expects its top-line to reach Rs 1 lakh crore by FY30, up from Rs 69,200 crore in FY25. The plan emphasizes both capacity expansion and product development, ensuring Hyundai can meet rising demand in India’s automotive market and sustain its position as a leading carmaker.

Market Position and Popular Models

Hyundai Motor India is currently the second-largest carmaker in India, trailing only Maruti Suzuki in market share. Its product portfolio includes best-selling models such as the Creta, Venue, and i20, which have consistently contributed to the company’s strong domestic presence.

The company’s announcements came ahead of its first investor day since listing in the Indian market last year. This event is expected to provide detailed insights into Hyundai’s strategic roadmap, investment allocations, and growth projections, reflecting its ambitions in the competitive passenger vehicle segment.

Strategic Implications

The combination of a new Indian CEO and a large-scale investment plan signals Hyundai Motor India’s commitment to strengthening its manufacturing base, research capabilities, and market position.

Analysts suggest that maintaining a healthy EBITDA margin alongside substantial revenue growth will be crucial for sustaining investor confidence and ensuring that Hyundai meets its long-term profitability targets. By investing heavily in both capacity and R&D, Hyundai aims to address rising consumer demand for innovative and premium products while enhancing operational efficiency.

The appointment of Tarun Garg is likely to provide localized leadership, which can facilitate faster decision-making, deeper understanding of the domestic market, and better alignment with India-specific strategies.

Outlook

With revenue projected to reach Rs 1 lakh crore by FY30 and the EBITDA margin maintained between 11–14%, Hyundai Motor India is positioning itself for significant growth over the next five years. The company’s focus on manufacturing expansion, research, and leadership continuity will play a critical role in achieving these targets.

The market response, reflected in a 2.5% rise in shares, underscores positive investor sentiment towards Hyundai’s strategy, leadership, and future prospects in India’s growing automotive sector.

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