The profit of Hyundai Motor India could get a hit in the third quarter, as sales remain in Slow Lane | Company Business News

Hyundai Motor India has never faced troublesome questions from analysts and investors following the release of the results for the 28 years of its existence in the country. But that has changed since the listing in Indian markets in October last year. When the Indian arm of Hyundai, based in South Korea, declares its earnings for the January to March quarter on May 16, it will have to experience some questions from independent investors who own about 17% of the company. There are now two important challenges for the business: stagnating sales and tough competition. According to the Federation of Automobile Dealers Association, Hyundai’s sales in the financial year 2025 fell 0.6% to 559,149 units. The company faces a challenge of homemade car giants Mahindra and Mahindra and Tata Motors for second place on the sector’s podium. Both Tata and Mahindra are quite close to the business, Klekkereldata shows. Tata Motors sales fell 0.7% to reach 535,960 cars in FY25. Mahindra recorded a 20% surge in sales to 512.626. While Hyundai takes relief from the fact that he was able to retain its second place, the financial year 2026 began on a rough note. Hyundai slipped to fourth position in April with 44,314 sales of passenger vehicles, while Mahindra jumped to second position with 52,330 pv sales. The company’s share has not earned much substantial profit since it has achieved only 0.5%so far with the markets so far. However, the Creta manufacturer still managed to perform the broader indices, as Nifty Auto has achieved a 4% decline since the listed company. Investors seem to still believe that the company has the fuel to take the fight to Tata and Mahindra. In this background, Mint emphasizes five things that will be the key to noting when the company declares its earnings in March quarter. Income Bloomberg estimates from a 12 -analyst poll indicates that the company will deliver a 1.8% decline in revenue up to £ 17,349 on an annual basis. Earnings before interest, tax, depreciation and amortization, or ebitda, are expected to drop 190 basis points to 12.1%. The company’s sales of passenger vehicles dropped 1.1% in the January to March period to 191.700. “Hyundai has helped a 1% drop in the volumes in 4Q. Strong growth in exports (+14% yoy) to compensate the weakness in domestic markets (-4% yoy),” analysts wrote at Motilal Owal Financial Service in a April 7 note. This will be the second consecutive quarter of falling income since the company has become public. The net profit is expected to drop 21% year on year to £ 1.332 in the January to March, according to Bloomberg estimates of a 14 -analyst poll. Falling sales and margins are expected to achieve profits of the business. In addition, the increasing part of the investment in electric vehicle (EV), which remains a loss -making segment, will have some influence on the profit. Hyundai, whose success in the SUV segment is crucial, must tackle the series of market leader Mahindra to increase sales. Led by Creta, the range of Hyundai India has a total of seven cars in the SUV segment that contribute about 68% of total sales. While sales of Hyundai remain silent, Mahindra achieved 20% growth in its SUVs sales last year. Investors want to know how the company plans to tackle Mahindra in the segment that threatened the second. EV plans the Creta EV, which was launched in January, helped to increase the total sales of electric vehicles during the year. In the past financial year, it sold 2.410 electric vehicles in the country, a 30% growth from the previous year. The company said it plans to have 10% of its overall Creta sales of the electric variant. Investors will have two things to ask. One, how does the company plan to increase sales of such vehicles? Second, how does the increasing investment in EVs affect the margins of the business? Question prospects The car sector is divided over the demand prospects for the country’s car market. On the one hand, India’s largest car salesman Maruti Suzuki Ltd is not hoping for any meaningful bakkie in the total sales of vehicles in the country. But on the other hand, Mahindra remains singing about the overall demand for cars in the market, as its products find a good response from consumers. All car manufacturers, including Hyundai, have implemented price increases during the year, ranging from 1-4%, which, according to some analysts, will weigh the consumer decision. How the Hyundai management sees the demand prospects will be an important thing to check after the firm announces its results.