Hyundai Motor's India subsidiary eyes October IPO

Industry

Published: 27 Jun. 2024, 17:56

Hyundai Motor's India subsidiary eyes October IPO

Hyundai Motor Group Chairman Euisun Chung, far left at the front, and Hyundai Motor CEO Chang Jae-hoon, far right, visit the exhibitions held at the Busan International Mobility Show 2024 at Bexco, Busan, on Thursday. [NEWS1]

The Indian subsidiary of Hyundai Motor aims to complete its initial public offering (IPO) by October, according to the Korean automaker’s chief.

Hyundai Motor CEO Chang Jae-hoon confirmed that the Indian subsidiary submitted its application for a preliminary review at the Busan International Mobility Show on Thursday.

“Our goal is to be ready for listing by October,” Chung said. “While securing funding is important, becoming a nationally recognized company in India is crucial given the market’s growth. We view India as an extremely important market and are committed to making substantial efforts and investments there.”

A Reuters report earlier this month stated that the Indian subsidiary filed for an IPO of almost $3 billion. The automaker will not be issuing new shares but is expected to sell up to 142 million of its 812 million total shares, or about 17.5 percent, the report said.

Chang expressed belief that the IPO will have a positive impact on Hyundai’s corporate value.

“We see it positively, and market expectations align with this view,” Chang elaborated. “Considering the overall condition of the Indian IPO market, it doesn’t seem unfavorable. We must make sure that we execute it well.”

India is the world's third-largest auto market after China and the United States, with some 4.1 million vehicles sold last year.

Established in 1996, Hyundai Motor is the second-largest automaker in the country after Maruti Suzuki, selling over 600,000 cars there last year, an all-time high in the 27 years since the Indian subsidiary was formed.

Hyundai invested $5 billion in operating two plants in Chennai, Tamil Nadu, in southern India. The plants can produce 850,000 cars a year.

Hyundai also purchased a factory in Talegaon from General Motors last year. The factory can produce 130,000 vehicles annually, likely boosting Hyundai’s annual production capacity in India to 1 million.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]