Hyundai loses ground in India but investors stay optimistic

Updated on Oct - 13 - 2025, 04:32 PM

Hyundai, once a dominant force in India’s automobile market, is facing an unusual paradox declining market share locally but soaring stock prices globally. The South Korean automaker, which held India’s No. 2 spot for decades, is now losing ground to domestic players such as Tata Motors and Mahindra. Despite this, Hyundai’s shares have jumped around 36% this year, signaling that investors see long-term promise even amid short term struggles.

According to a recent report in media Hyundai’s market share in India has hit its lowest level in more than a decade. The reasons are multifaceted. Indian automakers are now offering a diverse range of vehicles that better meet evolving consumer tastes, particularly in the SUV and electric vehicle (EV) segments. Hyundai, while still a strong brand, has been slower in adapting to these shifts.

However, investors appear to be focusing on Hyundai’s global growth prospects rather than its domestic slowdown. The company’s overseas sales, particularly in the United States and Europe, remain strong. Hyundai’s strategic investments in EV technology, hydrogen fuel cells, and next-generation mobility have also boosted confidence. Its premium electric lineup under the Ioniq brand is being seen as a key driver for future profits.

Another factor behind the rising stock is Hyundai’s financial discipline. Cost optimization, improved profit margins, and a steady dividend policy have strengthened investor trust. Analysts believe that while Hyundai’s India performance has weakened, the company’s overall global portfolio is well-positioned for long-term success.

Still, the challenge remains significant. To regain lost ground in India, Hyundai must innovate faster and localize production more aggressively. Competing with India’s homegrown giants requires a renewed focus on affordability, design, and consumer trust.

In short, Hyundai’s story is a reminder that market performance doesn’t always mirror investor sentiment. Sometimes, the stock market bets on potential and Hyundai’s future, at least for now, still looks bright.