Hyundai Motor India, a subsidiary of South Korea’s Hyundai Motor Co., is reportedly in preliminary discussions to launch an initial public offering (IPO) later this year, aiming to raise at least $3 billion. Sources familiar with the matter suggest that the Indian unit could garner a valuation ranging from $25 billion to $30 billion.
The IPO plans coincide with Hyundai Motor Group’s substantial investment of $3.3 billion into expanding its manufacturing capabilities in India over the forthcoming years. This move underscores the company’s commitment to bolstering its presence in the region’s automotive market.
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Hyundai’s strategic shift towards electric vehicle (EV) production in India gained momentum following its acquisition of General Motors’ Talegaon plant in Maharashtra in 2023. The facility is slated to serve as a manufacturing hub for Hyundai’s India-centric EV lineup.
In a recent development, Hyundai forged a memorandum of understanding with the Maharashtra state government, earmarking an investment of 70 billion Indian rupees ($845 million) to modernize and enlarge its car manufacturing facility in Talegaon.
India stands as a pivotal market for Hyundai, serving as its Southeast Asian hub. The company unveiled plans last May to inject 200 billion rupees ($2.45 billion) into its Chennai operations over the next decade. As part of this initiative, Hyundai will establish a battery pack assembly plant in Chennai and deploy 100 fast EV charging stations across Tamil Nadu within five years.
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Having commenced operations in India in 1996, Hyundai’s footprint in the country has significantly expanded. It initiated mass production of the compact hatchback Santro in 1998, marking its first model tailored specifically for the Indian market. Currently, Hyundai operates two manufacturing facilities in Chennai, Tamil Nadu, alongside the Talegaon plant in Maharashtra. Additionally, its sister company, Kia Corp., maintains a manufacturing presence in Andhra Pradesh.
Together, Hyundai and Kia have collectively sold approximately 9 million units in India over the past quarter-century, commanding a market share of 21.3% as of June 2023.
