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UBS initiated coverage on Hyundai Motor (OTC:HYMTF) India (HYUNDAI:IN) with a buy rating and a price target of INR2,350.00. The investment firm cited the automaker’s optimization strategy that is expected to gain momentum with the opening of its Maharashtra plant, which will increase production capacity by approximately 30%.
The company, a subsidiary of Hyundai Motor Company (OTC:HYMLF) and India’s second-largest passenger vehicle manufacturer by FY25 volume, is projected to see domestic volume growth of 10% in FY26-28 compared to just 2% in FY19-25. UBS noted potential for dealer network expansion and addressing portfolio gaps, supported by plans to launch 26 new models by 2030 and an upcoming entry into the hybrid vehicle segment.
Export volumes are forecast to grow 11% in FY26-28, compared to flat performance in FY19-25, as India becomes a global manufacturing hub for the Korean automaker. The combination of improved product mix and operating leverage is expected to drive a 16% EBITDA compound annual growth rate from FY26 through FY28.
The Maharashtra facility will strengthen both domestic and export momentum, particularly in the SUV segment where Hyundai has established a strong presence in the Indian market. The capacity expansion comes as the company looks to capitalize on growing demand in both local and international markets.
UBS identified key risks including Hyundai Motor India’s heavy reliance on its Creta model for profitability and potential missteps in future product launches that could impact the company’s growth trajectory.
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