Hyundai Motor India Seeks Regulatory Approval for Major IPO on Mumbai Stock Market

Mumbai, India — In a significant development for the Indian automotive industry, Hyundai Motor India has sought regulatory approval to list on the Mumbai stock market. This move is anticipated to be one of the largest initial public offerings (IPOs) in the South Asian nation’s history.

India’s Thriving Automotive Market

India, now the world’s third-largest car market following China and the United States, presents a highly competitive landscape. Hyundai Motor India stands out as a major player, contending fiercely with other automotive giants such as Maruti Suzuki and Tata Motors.

Hyundai Motor India: A Market Leader

Hyundai is India’s second-largest car manufacturer by sales, capturing a 15% market share out of the 4.2 million passenger vehicles sold in the fiscal year 2024. Established in 1996, Hyundai was among the first foreign automotive brands to enter the Indian market. The company produces popular models like the ‘Creta’ sport utility vehicle (SUV) at its facility near Chennai, Tamil Nadu.

Hyundai’s plant in Tamil Nadu boasts an annual production capacity exceeding 820,000 units. With the acquisition of a second facility in Western India, Hyundai’s total production capacity is set to surpass 1 million units in the coming years. Currently, Hyundai offers the IONIQ 5 as its sole imported electric vehicle (EV) model in India, with plans to launch its first locally produced EV next year.

Maruti Suzuki: The Dominant Force

Hyundai’s primary competitor, Maruti Suzuki, holds a commanding 42% market share. Majority-owned by Japan’s Suzuki Motor, Maruti Suzuki went public in 2003 and operates three plants in India with a combined annual capacity of 2.35 million units. Maruti’s top-selling models include the Wagon R, Swift, and the Brezza SUV. The company is also gearing up to introduce hybrid and electric vehicles to the Indian market.

Tata Motors: A Rising Contender

Tata Motors ranks as the third-largest car manufacturer in India, having made its market debut in 1955. With production facilities in Pune, Maharashtra, and Sanand, Gujarat, Tata Motors has a combined annual production capacity exceeding 1 million units. The company’s SUVs, such as the Nexon and Punch, have significantly bolstered its market share to 14%, placing it just behind Hyundai. Notably, Tata Motors leads the Indian EV market, commanding a 70% share.

Mahindra & Mahindra: SUV Specialist

Mahindra & Mahindra, part of the Mahindra Group conglomerate, is India’s fourth-largest car manufacturer by sales. Listed on the Mumbai stock exchange since 1956, Mahindra is renowned for its large, premium SUVs like the Scorpio and XUV700, making it the top SUV manufacturer by revenue in India. Mahindra’s annual production capacity is approximately 588,000 units, with manufacturing operations based in Pune. The company currently offers one EV model and plans to launch a range of electric SUVs by early 2025.

Implications of Hyundai’s IPO

Hyundai Motor India’s IPO is poised to reshape the dynamics of the Indian automotive market. By listing on the Mumbai stock market, Hyundai aims to capitalize on India’s robust market growth and further solidify its position as a leading automotive manufacturer. This move underscores the company’s commitment to expanding its footprint and innovation in the rapidly evolving automotive sector.