Hyundai Motor India (HMI) witnessed a significant stock rally, surging 5% on Friday to hit a two-month high of Rs 1,928.80 on the Bombay Stock Exchange (BSE). This upward trend comes amid heavy trading volumes, outperforming an otherwise subdued market.
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| Hyundai’s stock surges 5% on strong export growth and EV momentum. |
Key Highlights
- Stock Performance: Up 19% in the past seven sessions; gained 15% in February 2025 alone.
- Export Growth: 10.5% YoY increase in exports during January 2025, driven by strong overseas demand.
- Market Impact: Trading at its highest level since November 29, 2024; near its IPO high of Rs 1,968.80.
- Trading Volume: Over 2.27 million shares traded across BSE and NSE.
Why is Hyundai Stock Rising?
Several factors have contributed to HMI’s recent stock surge:
Robust Export Performance
Hyundai’s exports grew 10.5% year-on-year in January 2025, reinforcing confidence in its global market strength. The company’s success in key emerging markets like Latin America, the Middle East, and Africa is a crucial driver of this growth.
Favorable Budget Policies
The direct-tax cut announced in Budget 2025 is expected to boost demand for passenger vehicles, particularly in the entry-segment car and premium motorcycle categories. Analysts believe this could further drive Hyundai’s sales in the coming quarters.
Strong EV Strategy
Hyundai is aggressively pushing its electric vehicle (EV) strategy, with the launch of the CRETA Electric expected to be a game-changer. The company is also investing in:
- EV localization to reduce dependency on imports.
- Charging infrastructure development to improve accessibility.
- Three more upcoming EV models, strengthening its foothold in India’s EV market.
Analyst Outlook & Industry Trends
Experts remain optimistic about Hyundai’s long-term prospects. According to Emkay Global Financial Services, HMI is well-positioned to drive premiumization and adapt to alternative powertrains like hybrids, hydrogen, and flex-fuel technologies.
Future Market Trends
- FY25: Domestic passenger vehicle (PV) growth expected to remain in low single digits due to a high base effect.
- FY26: Industry growth could stabilize, with potential tailwinds from interest rate cuts, improved rural demand, and better market sentiment.
Conclusion
Hyundai Motor India’s stock rally reflects strong investor confidence in its export performance, EV ambitions, and strategic growth plans. With a positive industry outlook and Hyundai’s focus on premiumization and electrification, the company is well-poised for sustained growth in the Indian auto market.
