Hyundai Motor India's Bayon launch expected to lift second-half volumes; Buy retained

What happened

Nomura kept its Buy rating on Hyundai Motor India with a target price of Rs 2,498, saying the Bayon compact SUV launch should lift domestic volumes in the second half of FY27. Hyundai launched the Bayon on October 26 at an introductory price of Rs 1 million.

Confirmed

Global impact / market context

A new model priced at Rs 1 million adds a fresh source of revenue for Hyundai Motor India and sits below the Creta in its lineup. Nomura's estimate of 6,000 Bayon units a month suggests added sales volume that could support profit and investor returns.

Analyst inference

Nomura expects Hyundai's lower sales base in the second half of last year to make growth look stronger and help it beat the wider industry. That view supports the Buy rating and Rs 2,498 target price for investors holding or considering the stock.

Analyst inference

What to watch

1. Bookings for the Bayon have opened, and deliveries are set to begin right after the launch, so early buyer response will show whether demand meets Nomura's estimates. Confirmed
2. Hyundai plans a CNG variant of the Bayon in January 2027, which could broaden its appeal and add volume if buyers respond well to the lower running cost option. Proposed
3. Watch whether monthly Bayon sales approach Nomura's estimate of 6,000 units in FY27, since weaker sales would undercut the volume growth case behind the Buy rating. Analyst inference

Evidence

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