Hyundai Motor India, Ltd. (HMIL) is reportedly pushing for an initial public offering (IPO) on the Indian stock market later this year. HMIL is a wholly owned subsidiary of Hyundai Motor Company.
According to media outlets in India, HMIL is in early-stage negotiations for an IPO later this year. Hyundai Motor is reportedly planning to raise at least US$3 billion from the Indian stock market by listing a portion of its shares based on its stock market valuation of US$25 billion to US$30 billion.
Hyundai Motor established its Indian subsidiary in 1996 and began mass production in 1998 at its Chennai plant in Tamil Nadu with its first model, the Santro, a modified version of the Atos. Since then, Hyundai Motor grew fast, ranking second to Maruti Suzuki in sales in India with 1.4 billion people.
In particular, Hyundai Motor has been ramping up its investment in the Indian market, which has recently become the world’s third-largest car market. As the Chinese market continues to slump and the Korean automaker has sold off its Russian plant, it is planning to further increase its competitiveness in the Indian car market to expand its sales and presence in emerging markets.
Chennai is home to Hyundai Motor’s two plants and Kia Corp.’s plant is located in Anantapur in the middle of the country. Hyundai and Kia are sister companies as they belong to Hyundai Motor Group. Kia recently acquired a plant in Talegaon, India from General Motors. As a result, Hyundai Motor Group will reportedly invest around 1 trillion won in the Talegaon area. Initially, the Korean automotive group said it will invest about 4 trillion won in India by 2032, but this decision is expected to push up its investment in India to 5 trillion won.
When the Talegaon plant begins its volume production in 2025, it will be Hyundai Motor Group’s third automobile factory in India, joining Hyundai’s Chennai Plant 1 and 2, which can produce 820,000 units a year, and Kia’s Anantapur Plant with an annual production capacity of 340,000 units. Upon the completion of the expansion, Hyundai Motor Group’s production capacities in India will climb to approximately 1.5 million units.