Brand Marketing
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Hyundai spends ₹687 crore on advertising despite profit dip in FY25
Hyundai Motor India Limited (HMIL) reported a consolidated profit after tax (PAT) of ₹5,640.21 crore for the financial year ended March 31, 2025 (FY25), marking a decline from ₹6,060.04 crore in FY24.
Despite the near-flat trajectory in advertising expenditure, Hyundai undertook several key product interventions during the year
Hyundai Motor India Limited (HMIL) maintained its advertising and sales promotion spending at nearly the same level in FY 2024–25 compared to the previous fiscal, despite broader shifts in its expense portfolio.
According to the company’s latest annual report, the total expenditure on advertisement and sales promotion stood at ₹687.3 crore in FY25, marginally higher than ₹684.2 crore in FY24. This reflects a cautious yet consistent approach to brand visibility and marketing investment, even as other cost components like royalty, freight, and distribution fees witnessed notable increases.
The advertising and promotion expense forms a part of HMIL’s broader “Other Expenses” category, which rose from ₹7,182 crore in FY24 to ₹7,999 crore in FY25—a jump of over ₹800 crore. However, the share of advertising within this group slightly dipped as a percentage of total “Other Expenses,” moving from 10% to 9% year-on-year.
Hyundai Motor India Limited (HMIL) reported a consolidated profit after tax (PAT) of ₹5,640.21 crore for the financial year ended March 31, 2025 (FY25), marking a decline from ₹6,060.04 crore in FY24. Despite stable operational performance, the automaker saw a marginal dip in both revenue and profitability, attributed to lower export realization and higher operating costs.
Despite a 15,824-unit drop in total vehicle sales volume, Hyundai managed to retain margins by implementing cost optimization strategies and pricing adjustments in line with market dynamics.
Despite the near-flat trajectory in advertising expenditure, Hyundai undertook several key product interventions during the year, including the launch of the Creta Electric and a facelifted Alcazar, highlighting the brand’s focus on innovation and market relevance.
Tarun Garg, Chief Operating Officer, Hyundai Motor India Limited said, “Over the past 29 years, HMIL has invested more than US$ 6 billion to scale up and deepen our presence in India. We recently achieved a significant milestone by surpassing 12.7 million cumulative sales (domestic + exports), with domestic sales reaching close to 9 million mark as of Mar’25. During the year FY 2024-25, HMIL maintained 2nd position in both Domestic as well as Exports and continues to be a key pillar in Parent Hyundai Motor Company’s global success contributing 18.5% to its global production.”
HMIL attributed the drop in revenue to a decline in exports and a lower average selling price in overseas markets due to regional and model mix. However, domestic ASPs improved due to a higher share of SUV sales and vehicle premiumization.
Looking ahead, Hyundai aims to scale production capacity beyond 1 million units annually with the commercial launch of the Pune plant in FY26.
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