Hyundai IPO: How India’s No. 2 Carmaker is Gearing Up to Take on Maruti Suzuki in the Battle for Market Dominance!

With Hyundai Motor India’s IPO launching in less than a week, the company is gearing up to compete with its biggest rival, Maruti Suzuki India (MSIL). According to Chief Operating Officer (COO) Tarun Garg, Hyundai plans to build on the strength of its parent company, Hyundai Motor Company, to introduce new benchmark products and continue its growth in India.

Speaking with ETNow, Garg highlighted how Hyundai has consistently grown in the Indian market by introducing top products like the Creta, Venue, Exter, and IONIQ 5. He stated that the company plans to keep following this strategy, using its strong global presence to set new standards in various segments. “We’ve followed this path with the Creta, Venue, Exter, and even the IONIQ 5, and we’ll continue to do so,” Garg said.

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Focus on Premiumisation and Growth

Garg also noted Hyundai’s focus on premium products, especially SUVs. He mentioned that 68% of Hyundai’s sales come from SUVs, a much higher percentage than the industry average. This focus on premiumisation is part of their strategy to boost their market share.

Hyundai is currently expanding its Pune plant and adding the capacity to produce 250,000 more units. Garg called the upcoming IPO a “stepping stone” to the next phase of Hyundai’s growth in India.

Details of Hyundai’s IPO

The Hyundai Motor India IPO is set to open on Tuesday, October 15, with a price range of ₹1,865 to ₹1,960 per share. The ₹27,870 crore public offer is an offer for sale (OFS), meaning the Korean parent company will sell 14.2 crore shares. Hyundai Motor India won’t receive any proceeds from this, as the money will go directly to the parent company.

‘Make in India’ Focus

Garg emphasized Hyundai’s commitment to the ‘Make in India’ initiative, explaining that right from the start, Hyundai has focused on producing cars in India for both the domestic market and for export. He highlighted that Hyundai has a strong 80-20 domestic to export mix, which not only helps the brand but also contributes to India’s foreign exchange.

Looking ahead, Garg said that with the new Pune plant, Hyundai is well-positioned for sustainable growth in the future.

Why Now?

When asked about the timing of the IPO, Garg explained that this is the right time, especially post-COVID, as India’s economy is growing at a rate of 6.5% to 7%, which is much higher than many other countries. This strong growth makes it the perfect moment for Hyundai to expand its presence in the Indian market.