Shares of Hyundai Motor India Ltd (HMIL) have garnered attention following a three-year wage settlement with the United Union of Hyundai Employees (UUHE). The agreement, which is set to take effect from April 2024 and last until March 2027, includes a monthly salary increase of ₹31,000 for technicians and workmen, distributed over three years in a ratio of 55:25:20.
In addition, the company announced an expansion of its Talegaon plant in Maharashtra, which will elevate its total production capacity to nearly 1.1 million units annually. This expansion comes on the heels of recent GST rate adjustments concerning small cars, anticipated to boost market demand.
On the stock market front, HMIL shares reached a new high of ₹2,745.70 on the National Stock Exchange, before settling at ₹2,731 at 12:20 PM on Friday. This marks an approximate 23.5% increase from ₹2,222 recorded on August 14, 2025, prior to the announcement of the GST reforms. The steady rise in share prices demonstrates investor confidence in the company’s long-term growth strategy, even in light of increased labor costs.
The Nifty Auto index has risen nearly 13% since mid-August; however, it has shown relative stability over the past week. Prominent individual stocks such as Maruti and JBM Auto have experienced significant gains. In Friday’s trading session, Ashok Leyland, Eicher Motors, Maruti, and Hero Motocorp were among the top contributors to the index’s gains.
Published on September 19, 2025
