Hyundai Motor India Ltd (HMIL) experienced a significant decline in export volumes during the first quarter of FY27, with exports falling 19.6% to 38,708 units compared to 48,140 units in the corresponding period of the previous fiscal year. According to Managing Director and CEO Tarun Garg, the decline was primarily attributed to the ongoing US-Iran conflict and temporary production disruption caused by a fire incident at supplier Mobis's facility in June. As reported by Business Standard, Garg explained that the US-Iran conflict, which began towards the end of the last financial year, continued to impact Middle East exports during Q1 FY27, while export volumes were also affected by temporary production disruption.
Despite the challenging first quarter, HMIL remains optimistic about export recovery prospects. Garg expressed confidence in delivering the company's stated full-year growth guidance of 8% to 10% overall growth, with expectations of strong recovery in export volumes from Q2 onwards. According to the CEO's statements to analysts, the underlying fundamentals of the export business remain strong, supported by healthy order backlog across key markets and robust customer demand. The company's aspirations extend beyond recovering to Q1 FY26 levels of around 48,000 units per quarter, with management expecting to achieve better performance in coming quarters.
HMIL is strengthening its export product offerings through strategic model launches and expansions. The new Venue continues to receive encouraging response in export markets, with the company planning to expand from the current 29 markets to 35 total markets in the near future. As reported by Business Standard, the company has started shipments for Verna PE and Exter PE, including the left-hand-drive version of Exter, which began shipment in the second quarter. The Exter LHD will reach 13 markets by quarter 3, while Verna PE will expand to more than 25 markets by Q3.
Central and South America (CSA) markets demonstrated strong performance despite global challenges. According to Garg's statements, CSA markets witnessed 23% year-on-year growth in Q1, with steady demand continuing in these regions. The company noted that efforts made in CSA during January to March and April to June quarters will support future growth. However, challenges persist in Mexico due to tariffs, though the company is receiving good orders from the region.
Despite ongoing challenges, HMIL is implementing measures to address operational issues. The company continues to face freight challenges through the Strait of Hormuz, though logistics partners are finding ways to mitigate these issues. As reported by Business Standard, the fire incident at supplier Mobis's facility has been resolved, enabling production ramp-up, while the company is receiving good orders from the Middle East. Garg noted that the fire incident is behind them and production has been successfully ramped up, supporting the optimistic outlook for export recovery.
