Hyundai Motor plans to list its Indian subsidiary to enhance its visibility and expand manufacturing capacities for EVs and SUVs in the world's third-largest car market after China and the US.
According to Reuters, on June 14, Hyundai Motors-owned Hyundai Motor India Limited filed a Draft Red Herring Prospectus (DRHP) for an IPO in India. While specific pricing details are yet to be revealed, sources told Reuters that Hyundai aims to raise US$2.5-3 billion at a valuation of up to US$30 billion. The timeline for the IPO approval remains unclear, with India's market regulator typically taking 3-6 months to process such applications.
According to the DRHP, from 1998 until March 31, 2024, Hyundai Motor India sold nearly 12 million passenger vehicles in India and through exports. The filing stated Hyundai Motor India has consistently been India's leading exporter of passenger vehicles, holding this position from Fiscal 2005 through the first 11 months of Fiscal 2024.
The DRHP revealed that Hyundai anticipates the listing to boost its visibility and brand image while creating a liquid market for shares in India. According to the document, Hyundai Motor plans to sell up to 17.5% of its shares in its Indian unit through the listing. This move marks the first time an automaker has gone public in India in two decades, following Maruti Suzuki in 2003.
Korea Times reported that the IPO decision is poised to bolster Hyundai's competitive edge by enabling significant fundraising opportunities. The report quoted Kim Kwang-soo of LS Securities saying that these funds will primarily support the expansion of production capacity in India.
In the DRHP, Hyundai plans to transform the Chennai manufacturing plant into a hub for EVs and SUVs. In addition, the company plans to enhance its manufacturing capacity by integrating the Talegaon plant, which is slated to begin commercial operations in the latter part of fiscal 2026.
Hyundai expects its combined annual production capacity across the Chennai and Talegaon plants to rise to 994,000 units. Combined annual production capacity is expected to reach 1,074,000 once the Talegaon facility is fully operational.
