Hyundai Motor Company is considering launching an initial public offering (IPO) for shares in its Indian unit, Hyundai Motor India (HMI), later this year, according to local reports citing unnamed sources.

The automaker was understood to be considering raising over US$3bn from floating its Indian car making unit to help fund the company’s expansion in that fast growing market.

Reports suggested the IPO could value HMI at up to US$30bn with shares to be traded on the Bombay (Mumbai) stock exchange.

HMI produced 766,000 cars last year in plants operating at close to full capacity which forced the company to prioritise production of higher value models.

The company acquired General Motors' unused assembly plant in Talegaon, Maharashtra, at the end of last year which was expected to increase its annual production capacity to 1m units. The company said it would invest US$875m to prepare the plant for production of vehicles, including electrics, for local sale.

HMI planned to invest up to US$3bn by the end of the decade to expand capacity at its existing sites near Chennai in Tamil Nadu state.

The company has two main production facilities there with annual capacity of 800,000 vehicles for local sale and export.