Hyundai Motor India has recently made headlines with a 2.4% surge in its share price, reaching a peak of ₹1,653.95 on the National Stock Exchange. This uptick comes on the heels of the company’s announcement to implement a price hike of up to 3% on its vehicles, set to take effect in April 2025. As the market reacts to these changes, let’s delve into the reasons behind this decision and its implications for Hyundai’s future.
Price Increase Details
On March 19, Hyundai Motor revealed plans to increase the prices of its vehicle lineup. This marks the second time the company has adjusted prices since its market debut in October 2024. Just months earlier, in December 2024, Hyundai raised car prices across various models by ₹25,000.
Hyundai attributed this latest price adjustment to several factors, including:
- Rising input costs
- Increased commodity prices
- Higher operational expenses
The price increase will vary depending on the specific model and variant, providing some flexibility as the company navigates these financial challenges.
Company Statement on Price Hike
Tarun Garg, the Chief Operating Officer at Hyundai Motor India, emphasized the company’s commitment to minimizing customer impact. He stated, "While we strive to handle rising costs internally, the persistent increase in operational expenses necessitates a slight price adjustment. This change will take effect in April 2025, and we are dedicated to finding ways to alleviate future cost impacts for our valued customers."
Financial Performance Overview
In terms of financial health, Hyundai reported a 19% decrease in its consolidated net profit, which fell to ₹1,161 crore for the third quarter of FY25. This is down from ₹1,425 crore recorded in the same quarter the previous year. Additionally, the company’s total income dipped by 2% year-on-year, totaling ₹16,892 crore compared to ₹17,244 crore in the prior year.
Stock Market Trends
Over the past five trading sessions, Hyundai Motor’s stock has seen a slight increase of 0.06%. However, the stock has experienced a decline of 11.25% over the past month and has dropped 10% since its initial listing. These trends indicate a fluctuating performance as the company adjusts to market demands and economic pressures.
As Hyundai prepares for its upcoming price changes, it remains focused on balancing operational costs with customer satisfaction. The company’s ability to navigate these challenges will be crucial in maintaining its competitive edge in the automotive market.
