Hyundai Motor India debuted on the stock market on October 22, 2024, raising $3.3 billion through its initial public offering (IPO). This marked the largest IPO ever in India and the second biggest globally in 2024.
The funds raised will enhance Hyundai’s research and development in electric vehicles and software and expand production capacity in India.
The automaker plans to make India a global manufacturing hub for exports to Europe and Southeast Asia, shifting its focus away from markets like Russia and China. With Hyundai’s listing in India, the company plans to leverage the country’s booming automotive sector for future growth.
Hyundai’s IPO in India is the automaker’s first listing of a subsidiary outside of South Korea as its global expansion strategy.
Executive Chair Chung Euisun emphasized the company’s long-term commitment to India, describing the country as a “strategic export hub” for key regions like the Middle East, South Asia, and South America. These regions offer growth potential and relatively lower competition, making India a critical player in Hyundai’s global plans. Chung’s speech at the National Stock Exchange highlighted the automaker’s focus on innovation and localization, promising continued investment in R&D and job creation.
Prashant Gupta, National Practice Head of Capital Markets, and other key team members led the transaction team for this historic listing, including Nikhil Naredi, Priya Awasthi, Jheel Bhargava, and Veronica Miranda.
Kotak Mahindra Capital, Citigroup Global Markets, HSBC Securities, J.P. Morgan, and Morgan Stanley were the key book-running lead managers for the IPO. This is the fourth major IPO in India the firm has advised on, following high-profile listings like Paytm and the Life Insurance Corporation of India.
Hyundai’s decision to expand in India comes as the country gains geopolitical importance, particularly for global carmakers seeking growth beyond the competitive markets of North America and Europe.
Since entering the Indian market in 1996, Hyundai has become the country’s second-largest automaker by sales, creating over 250,000 jobs in the process. The company has been a major player in the Indian automotive sector, contributing to local manufacturing and innovation.
The historic IPO of Hyundai Motor India is seen as a game-changer, potentially encouraging other multinational companies to list their Indian subsidiaries. As the global automotive industry pivots toward electric vehicles (EVs), Hyundai will be seen capturing a larger share of the Indian EV market. The company plans to increase investments in India to localize EV supply chains and establish a nationwide charging infrastructure.
Hyundai’s first locally manufactured EV, the Creta EV, is set for launch in January 2025, following the success of its smaller electric SUV model. In 2023, Hyundai achieved record sales of over 600,000 vehicles in India. The company is also expanding its production capacity with renovations underway at a new plant in Pune, acquired from General Motors. Once operational, this facility and its main Chennai plant will increase Hyundai’s total annual production capacity in India to over 1 million vehicles.
By 2028, Hyundai expects to boost its production capabilities further, targeting an output of 1.5 million vehicles annually from its Indian factories. Key executives, including CEO Chang Jae-hoon and COO Tarun Garg, participated in the company’s listing celebration.
