Hyundai Motor India Files for IPO Amidst Fierce Competition in Indian Car Market
Hyundai Motor India has sought regulatory approval to list on the Mumbai stock exchange, potentially marking one of the largest IPOs in South Asia. India, the third-largest car market globally after China and the United States, sees Hyundai in fierce competition with major players like Maruti Suzuki and Tata Motors.
Hyundai Motor India has sought regulatory approval to list on the Mumbai stock exchange, potentially marking one of the largest IPOs in South Asia. India, the third-largest car market globally after China and the United States, sees Hyundai in fierce competition with major players like Maruti Suzuki and Tata Motors.
Hyundai Motor India stands as the second-largest car manufacturer in India by sales, holding a 15% market share of the 4.2 million passenger vehicles sold in the country in the fiscal year 2024. Hyundai was one of the first foreign brands to establish itself in India, commencing operations in 1996. The company manufactures popular models such as the Creta SUV at its plant near Chennai in southern India. Hyundai’s Tamil Nadu facility boasts an annual production capacity of over 820,000 units. With the acquisition of a second plant in western India, this capacity is set to exceed 1 million units in the coming years. Currently, Hyundai sells just one imported electric vehicle (EV) model, the IONIQ 5, and plans to launch its first locally produced EV next year.
Maruti Suzuki, with a commanding 42% market share, is Hyundai's biggest rival in India and went public in 2003. Majority-owned by Japan's Suzuki Motor, the company operates three plants in India, collectively capable of producing 2.35 million units annually. Maruti's smaller cars, such as the Wagon R and Swift, are among the top-selling models in the country, and it is also known for its Brezza SUV. The company has announced plans to introduce hybrid and electric vehicles in the Indian market.
Tata Motors, the third-largest car manufacturer in India by sales, debuted on the market in 1955. Tata Motors produces vehicles in Pune in western Maharashtra state and Sanand in Gujarat state, with a combined total production capacity exceeding 1 million units per year. Tata's Nexon and Punch models are among the country's most popular SUVs, contributing to the company's market share rising to 14%, just behind Hyundai. Tata dominates the EV market in India, holding over a 70% market share in this segment.
Mahindra & Mahindra is the fourth-largest car manufacturer by sales in India and a part of the Indian tech-to-tractors conglomerate Mahindra Group. The company listed its shares in Mumbai in 1956. Known for its large and expensive SUVs such as the Scorpio and XUV700, Mahindra is India's largest SUV manufacturer by revenue. With an annual capacity of around 588,000 units, Mahindra produces its vehicles in Pune. The company currently offers one EV model and is expected to launch a series of electric SUVs in early 2025.
Hyundai’s move to go public in India is set to intensify competition in the country's burgeoning car market. As the company aims to expand its production capabilities and introduce locally manufactured electric vehicles, the strategies employed by Hyundai and its competitors will be critical in shaping the future dynamics of this crucial market.
