Hyundai India emerges a driving force for parent

Hyundai Motor, South Korea's largest carmaker that produces a car every 33 seconds, has recorded its highest-ever profit and turnover in India in FY18 cushioning the carmaker from pressures in key markets of US, Europe and China. Hyundai Motor India's turnover grew 5 per cent to $5.8 billion for FY18 with profit after tax swelling 8 per cent to $300 million. In a market that grew 8 per cent, Hyundai India's domestic sales grew just 5 per cent in FY18 to 540,000 units. However, a rich model mix and higher capacity utilisation ensured a healthy profit growth in the financial year ended March 2018. While the company's market share in India has been range bound at 16-17 per cent, its contribution increased from 13 per cent to 16 per cent under its erstwhile CEO Y.K. Koo, who understood the Indian market much better and delivered healthy performance. With factories operating at 100 per cent capacity, the South Korean car maker has been relying on shifting production from exports to the domestic market. Hyundai is of the opinion that the Indian automotive industry is well positioned for growth, given the low rate of auto penetration and increasing affordability.