Hyundai Motor IPO

Hyundai Motor India Limited (HMIL) was incorporated on May 6, 1996, as a public limited company under the Companies Act, 1956. Since its inception, HMIL has established itself as a significant player in the Indian automotive market, launching its first vehicle, the Hyundai Santro, in 1998. The company quickly became the second-largest car manufacturer in India and the largest exporter of passenger vehicles, supported by a robust manufacturing facility near Chennai. By fiscal year 2024, HMIL achieved a market share of 12% in hatchbacks, 22% in sedans, and 18% in SUVs, reflecting its strong foothold in the rapidly growing passenger vehicle segment.

The Indian passenger vehicle industry has shown resilience and growth, rebounding from a contraction between fiscal years 2019 and 2021 to reach record sales of 4.2 million units in fiscal 2024. This growth has been driven by factors such as rising disposable incomes and an increasing preference for SUVs. With a comprehensive range of vehicles that includes compact cars and electric models like the IONIQ 5, HMIL is well-positioned to capitalize on future opportunities in the evolving automotive landscape.

Hyundai Motor IPO Strengths

• Hyundai Motor India: second-largest auto OEM, top passenger vehicle exporter.
• Offers sedans, hatchbacks, SUVs for diverse customer preferences.
• Exports vehicles to 150+ countries; key production, export hub.
• Utilises global trends, advanced tech via Hyderabad R&D center.
• Extensive network: 1,366 sales outlets, 1,550 service centers nationwide.

Hyundai Motor IPO Risks

• Rising parts prices may harm operations and profitability.
• Supplier dependency risks supply chain disruptions.
• Legal issues could damage Hyundai’s business and reputation.
• Chennai plant disruption affects production and finances.
• Internal competition with Kia may impact market share.