Hyundai Motor India has announced a major investment of ₹694 crore to establish a tooling centre in India. This new facility will focus on producing stamping tools and panels, essential parts used in car manufacturing. By making these parts locally, Hyundai aims to strengthen its supply chain and ensure a steady flow of materials needed for production. This move is expected to improve manufacturing efficiency and reduce dependence on external suppliers.
Despite this investment, Hyundai faced a decline in profits for the third quarter of the financial year. The company reported a consolidated net profit of ₹1,124 crore, a 19% drop compared to ₹1,425 crore in the same quarter of the previous year. Revenue from operations also saw a slight decline, reaching ₹16,648 crore against ₹16,875 crore in the previous fiscal period.
On the sales front, Hyundai managed to sell 186,408 passenger vehicles during the quarter. The domestic market accounted for 146,022 units, supported by strong demand for SUVs. Export numbers remained stable, with 40,386 units shipped to other markets. A key highlight of this quarter was the rise in CNG vehicle sales, which accounted for 15% of Hyundai’s total sales, up from 12% a year ago. Additionally, rural sales showed growth, increasing to 21.2% from 19.7% in the previous year.
With the new tooling centre and a focus on local manufacturing, Hyundai aims to improve production stability and long-term growth. While profit numbers have dipped, the company continues to see steady demand in the domestic market, particularly for SUVs and CNG vehicles. The coming quarters will reveal how these investments and market trends shape Hyundai’s future in India.