Hyundai Motor India IPO update:
Hyundai Motor India is the second-largest passenger vehicle (PV) original equipment manufacturer (OEM) in India by volume, Hyundai Motor India’s IPO is expected to hit the market within the next 4-6 months.
According to Emkay Global, Hyundai’s draft IPO papers indicate that the domestic PV industry could grow at a mid-single-digit rate (4.5-6.5 percent) until FY29, driven by the rising contribution of alternative fuels (CNG, EVs, strong hybrids) and SUVs.
Hyundai’s Indian operations are gaining importance within the global Hyundai network, with India’s role in both domestic and export markets expected to be further supported, as suggested in the IPO draft papers. Hyundai Motor India aims to maintain its strong focus on premiumization with initiatives across internal combustion engine (ICE) vehicles and EVs, according to the domestic brokerage.
“Hyundai Motor India enjoys superior profitability metrics compared to Maruti Suzuki India (MSIL), thanks to a better mix (63 percent contribution from SUVs versus 25 percent for MSIL) and premium positioning, though this is partially offset by lower scale. We maintain a REDUCE rating on MSIL with unchanged estimates and a target price of Rs 11,200,” Emkay Global stated. Hyundai aims to keep its capacity utilization above 90 percent, down slightly from 97 percent in December 2023, by optimizing the mix between domestic sales and exports.
The company plans to develop India as an export hub for emerging markets, including South Asia, Latin America, Africa, and the Middle East. Hyundai has four EV model launches planned, including the electric Creta in Q4FY25.
“Hyundai is taking steps to develop EV manufacturing in India along with the related supply chain across Tamil Nadu and Maharashtra, with a Rs 320 billion investment commitment. The focus on high localization levels in EVs, along with the introduction of an EV-specific platform, is expected to help reduce costs and improve price competitiveness,” Emkay Global reported.
