Hyundai Motor India Limited, a subsidiary of Hyundai Motor Company, has officially launched its initial public offering (IPO) on 15 October 2024. As India’s second-largest car manufacturer, Hyundai's growth reflects a well-executed strategy of diversifying its product lineup and expanding into Tier-2 and Tier-3 cities.
This IPO positions the company to bolster its market presence and compete more effectively against rising local competitors, says GlobalData, a leading data and analytics company.
Earlier this year Hyundai said it aims to lead the country’s transition to battery electric vehicles (BEVs) by ramping up local production, bringing in new products and establishing a BEV ecosystem including a nationwide charging network.
Hyundai Motor Group’s executive chairman, Euisun Chung, during his visit to India earlier this year stated: “By around 2030, we expect to see a substantial expansion in the Indian EV market. In anticipation of this evolution, Hyundai is focused on developing locally-tailored EVs aimed at establishing the company as a leading global EV brand. We also plan to proactively build charging stations at strategic locations, including dealerships, to facilitate the adoption of EVs”.
Since its launch, Hyundai Motor India has experienced a remarkable trajectory, ascending to the position of India's second-largest car manufacturer. Hyundai's strong supply chain and distribution framework have been essential in ensuring the widespread availability of its vehicles, leading to increased sales.
The company's attentiveness to customer feedback, coupled with enhancements in after-sales services, has significantly strengthened its brand reputation. These elements have collectively propelled Hyundai's brand prestige in India, cementing its market position. Notably, Hyundai has recorded a remarkable 54.2% growth in light vehicle sales in India during the 2019-2024 period, according to GlobalData.
Vivek Kumar, Project Manager, Automotive at GlobalData, comments: “The company offers a wide range of products that cater to diverse consumer preferences, spanning from entry-level vehicles to luxury SUVs. Notable models like the Creta, Venue, and i10/i20 have contributed to solidifying the company's market share. By introducing vehicles tailored specifically for the Indian market, such as the Santro, the company has effectively positioned itself to compete with the established brands.”
Furthermore, the extension of its market share in the mid-size SUV segment with the Creta model has had a positive impact on the company’s sales.
Kumar adds: “Hyundai has not only focused on Tier-1 cities but has also actively pursued markets in Tier-2 and Tier-3 cities. The company is committed to investing approximately $2.4 billion, with a significant portion allocated to establishing an electric vehicle (EV) battery pack assembly plant in Chennai, Tamil Nadu, and enhancing production capacity at the existing facilities for both EVs and internal combustion engine (ICE) vehicles. This expansion serves both the domestic market and export opportunities.”
The investment is expected to support capacity growth and aid Hyundai's transition to EVs, further establishing its position as a global production hub.
Kumar concludes: “With the IPO, Hyundai Motor India is poised to set a new benchmark for success in India. To effectively compete in the highly competitive automotive market, and growing local powerhouses such as Tata Motors and Mahindra, Hyundai must continuously innovate and customize its vehicles to maintain its market position. Therefore, Hyundai's strategy must carefully balance cost and quality to remain attractive to value-conscious buyers. While the success of models such as the Creta and Venue indicates a positive reception for Hyundai's SUVs, the company must remain vigilant in updating its lineup to stay ahead.”
