Emkay Global Research has raised the 12-month target price for Hyundai Motor India to Rs 2,600 up from Rs 2,450 and reiterated its ‘Buy’ rating. This implies an upside of 16.8% from the current market price. This positive outlook is driven by several factors such as favourable product cycle, SUV premiumisation, and many others. 

Entering a stronger, favorable product cycle

After facing a lean product phase over the past five years (releasing only 3 new models during FY21–26), Hyundai Motor is accelerating its pipeline with 26 strategic product actions, including 7 new nameplates over the next five years. This rollout includes a localised mass-market compact E-SUV and a Bayon-based mid-size ICE-SUV, which are expected to fill key whitespace segments and help the company reclaim lost market share.

SUV-led premiumisation and rising ASPs

Evolving consumer demand is driving a premiumisation shift toward SUVs, which accounted for 68% of Hyundai Motor’s domestic volume in FY26, compared to 52% in FY22. Combining this rising SUV mix with a diverse multi-powertrain portfolio and an expanding export share is expected to act as a strong growth lever for Average Selling Prices (ASPs).

India’s elevation in Hyundai’s global strategy

Hyundai Motor Company (Korean parent company) is shifting India’s role from “Make in India” to “Create in India”. India is expected to become the company’s second biggest market globally by CY30/FY30 (up from 4th position currently), with export volume share targeted to rise to 30% within 5 years (up from 24.5% in FY26) to deepen integration with the company’s global supply chain.

Calibrated capacity expansion

Over the past five years, Hyundai Motor India’s growth was restricted by limited capacity and sustained high capacity utilisation (consistently exceeding 90%). The company is addressing this bottleneck by expanding its production capacity to 1.1 million units per annum (mnpa) by FY31 (up from 909k per annum in FY26) to support future volume growth.

Cost competitiveness through deeper localisation

Backed by a massive Rs 45,000 crore investment over the next five years in AI, automation, and EV localisation (specifically battery packs, power electronics, and drivetrains), the automobile company is targeting 90% localisation (up from 80% currently and 70% in FY20). This localisation drive significantly strengthens India’s cost advantage and supply-chain resilience.

Hyundai Motor India share price performance

The share price of Hyundai Motor India has surged 2.33% in the last five trading sessions. The stock has given a return of 13% in the past one month and 2% in the last six months. However, Hyundai Motor India’s stock price has dropped 10% over the previous 12 months.