Archive · 10 Nov 2025
Maruti Suzuki and Hyundai Show Strong Q2 Performance Amidst Shifting Market
Car companies Maruti Suzuki and Hyundai had a good performance in the last three months, doing better than expected.
Even though fewer people bought cars in India for a bit, they sold more cars to other countries.
They also made their cars cost less to produce and focused on selling more expensive, popular models like SUVs.
Hyundai is getting ready to launch many new cars, including electric and hybrid ones, and is expanding its production.
Maruti Suzuki is also getting ready with new models and could benefit from any government help for hybrid cars.
Analysts are feeling positive about both companies.
Maruti Suzuki and Hyundai's Q2 FY26 operating performance surpassed brokerage expectations due to strong product mix and cost management.
Domestic sales declined for both companies, attributed to customers delaying purchases ahead of GST price cuts, but exports saw significant growth.
Maruti Suzuki's revenue rose 13% driven by increased average realisations from SUVs and exports, while Hyundai's revenue grew 1.2% Y-o-Y.
Both companies improved margins; Hyundai saw a 240 bps gross margin increase Y-o-Y, and Maruti Suzuki's margins remained steady sequentially.
Analysts are optimistic about the domestic passenger vehicle market outlook, citing GST cuts and future product launches from both Maruti Suzuki and Hyundai.
- Who
- Maruti Suzuki India (MSIL) and Hyundai Motor India (HMIL)
- What
- Both companies reported operating performances in Q2 FY26 that exceeded brokerage expectations, with solid profitability driven by product mix and cost control, despite uneven volume trends.
- When
- July–September quarter (Q2) of 2025–26 (FY26)
- Where
- India (domestic market) and global export markets
- Why
- Profitability was bolstered by a richer product mix and tighter cost controls, while demand in the domestic passenger vehicle segment improved post-GST cuts.
Maruti Suzuki India (MSIL)
Hyundai Motor India (HMIL)
Domestic Sales Trends
Maruti Suzuki India (MSIL)
Domestic sales for MSIL fell by 5.1% as customers postponed purchases anticipating GST-driven price cuts.
Hyundai Motor India (HMIL)
HMIL experienced a domestic sales decline of 7%.
Export Growth
Maruti Suzuki India (MSIL)
MSIL's exports saw a significant jump of 42.2%, reaching a record quarterly high.
Hyundai Motor India (HMIL)
HMIL's exports climbed by 22% compared to the same period last year.
Revenue and Realization
Maruti Suzuki India (MSIL)
MSIL's revenue increased by 13%, exceeding estimates, driven by an 11% rise in average realisations, attributed to a higher proportion of SUVs and exports.
Hyundai Motor India (HMIL)
HMIL's revenue grew by 1.2% year-on-year and 6% sequentially, with realisations up by 1.7%.
Margin Performance
Maruti Suzuki India (MSIL)
MSIL's operating profit margin decreased by 140 basis points year-on-year but remained above projections, supported by cost reductions and a strong model mix despite higher discounts.
Hyundai Motor India (HMIL)
HMIL's gross margin improved by 240 basis points year-on-year, with SUVs constituting 71% of domestic volumes. Operating margins rose by 110 basis points.
Future Outlook and Strategy
Maruti Suzuki India (MSIL)
MSIL expects to exceed its FY26 export guidance and could benefit from government incentives for hybrids. New launches like Victoris and eVitara are expected to boost market share.
Hyundai Motor India (HMIL)
HMIL anticipates margin pressure due to new plant ramp-up costs and commodity inflation but plans to counteract this through product mix, higher exports, and cost discipline. They have 26 new models planned between FY26 and FY30, with eight due by FY27.
- Reporting Period
- July–September quarter (Q2) of 2025–26 (FY26)
- MSIL Domestic Sales Change
- -5.1%
- MSIL Export Growth
- +42.2%
- HMIL Domestic Sales Change
- -7%
- HMIL Export Growth
- +22%
- HMIL Gross Margin Improvement
- +240 basis points (bps) Y-o-Y
- HMIL New Models Planned
- 26 (FY26-FY30)
- MSIL Target Price (Motilal Oswal)
- Rs18,712
