New Delhi: Hyundai Motor India Ltd (HMIL) is gearing up for a significant ₹25,000 crore ($3 billion) initial public offering (IPO) to bolster its strategy of making India a pivotal export hub while expanding its domestic market presence, according to senior industry insiders.
The company intends to introduce around six electric vehicles (EVs) over the next four years, targeting both local sales and exports, as it ramps up production capacities in India.
Hyundai has expanded its manufacturing capability at its Chennai plant to 820,000 units annually to meet rising domestic demand. Additional capacity from the Talegaon facility, expected by 2025, will further support increased exports to markets in Latin America, the Middle East, and Africa. Despite global uncertainties, HMIL’s export revenue surged by 83% to ₹14,120.92 crore over the past three years, while domestic operations saw a 39% increase to ₹33,274.83 crore. In FY23, international sales contributed 23.4% to the company’s total revenue, accounting for about 21% of vehicle sales volume.
The funds raised from the IPO are likely to be allocated towards expanding capacity to over 1 million units across facilities in Tamil Nadu and Maharashtra, as well as developing new products including affordable EVs over the next decade.
Competition with Maruti Suzuki
HMIL aims to invest ₹32,000 crore in these states, with plans to introduce its first locally manufactured electric vehicle, potentially a variant of the popular Creta SUV, next year.
Earlier this year, HMIL’s Managing Director and CEO Un Soo Kim emphasized the strategic importance of India to Hyundai Motor Co., particularly following the acquisition of the Talegaon plant from General Motors.
“The Talegaon manufacturing plant will play a crucial role in achieving HMIL’s milestone of 1 million annual production capacity. This acquisition underscores our commitment to Aatmanirbhar Bharat (self-reliant India) by positioning India as a hub for advanced smart mobility solutions, catering to global markets through Make-In-India initiatives,” Kim stated.
This expansion strategy positions Hyundai to compete with market leader Maruti Suzuki, which is investing $5 billion to double production capacity to 4 million units annually by 2031. Maruti Suzuki plans to introduce its first locally manufactured EV next fiscal year, followed by five more EVs by 2030, aiming to triple exports from India to 750,000-800,000 units annually by FY31.
In the previous fiscal year, a total of 663,000 cars were exported from India, with Maruti Suzuki and Hyundai together accounting for two-thirds of these shipments.
Market Share of Domestic Companies
Domestic automakers such as Tata Motors and Mahindra & Mahindra held modest export shares of 0.4% and 2%, respectively. Kia, Volkswagen, and Nissan round out the top five car exporters from India with market shares of 9%, 7%, and 6%, respectively, according to industry data.
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