Race for India's No. 2 Car Company Tightens as Tata and Mahindra Put Pressure on Hyundai With a potential $3.5 billion Indian IPO on track for Hyundai, rival automobile companies, Tata Motors and Mahindra, eye the number two spot in the Indian market
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Maruti Suzuki is speeding ahead, claiming 40 per cent share of the market. Meanwhile, Hyundai, Tata, and Mahindra are locked in a tight battle for second place, with Hyundai holding onto 13.5 per cent, Tata, hot on its heels, at 13.2 per cent, and Mahindra trailing closely at 12.4 per cent, as per data from the Federation of Automobile Dealers Associations.The competition is heating up, especially with Tata and Mahindra breathing down Hyundai's neck as Hyundai motors brings out the big guns with a $3.5 billion IPO plan in India, the biggest-ever in the Indian subcontinent.
Hyundai India's CEO, Unsoo Kim, declared that the company reigns supreme, dominating multiple segments with its top-notch vehicles. However, COO Tarun Garg struck a note of caution, acknowledging that India's competitive landscape has proven treacherous for many international automakers, who have either fled the scene or struggled to gain traction. Despite this, Hyundai remains steadfast, its resilience and adaptability setting it apart as a true leader in the Indian market.
Hyundai is betting big on India's electric future, investing a staggering 200 billion rupees ($2.4 billion) to electrify the nation's roads, as per ET. As the country shifts gears towards a greener tomorrow, Hyundai is revving up its engines to launch an electric variant of its SUV, Creta, in early 2025. This strategic move aims to capture the growing demand for eco-friendly vehicles, marking a significant milestone in Hyundai's mission to eco-fy the Indian automotive landscape. Additionally, ET reports that the company is pumping in 70 billion rupees to get its second plant up and running by the end of 2025, further solidifying its commitment to India's sustainable mobility revolution.
Hyundai ahead of the curve with its upcoming IPO
Hyundai is gearing up for a historic milestone in India, as its subsidiary files for a landmark IPO that could be the country's largest ever. Despite its robust cash reserves, the automaker seeks to strengthen its war chest through this strategic move. The funds raised will be used to enhance shareholder value, partly through increased dividends.
In a unique approach, Hyundai will not issue new shares but instead offer up to 17.5 per cent of its Indian arm through an "offer for sale", allowing retail and institutional investors to own a piece of the company's success. As India's second-largest automaker, Hyundai is charting a new course, paving the way for a bright future in the Indian market. Read more
