Hyundai Motor Co. listed its Indian unit in Mumbai on Tuesday, raising $3.3 billion in the country’s largest-ever initial public offering. The move underscores the South Korean automaker’s strategic pivot toward India as it scales back operations in China.
The listing marks the first time a Hyundai overseas unit has gone public on a foreign exchange. The automaker plans to funnel the IPO proceeds into expanding its Indian operations, where it currently holds a 14.1% market share against leader Maruti Suzuki’s 40.8%.
Hyundai operates two plants in Chennai and one in Pune, targeting a combined capacity of 994,000 units by 2028. The company’s affiliate Kia runs an additional facility in Anantapur. Operating profits from their Indian units reached 921.1 billion won ($690 million) in 2023, according to company data.
The automaker faces growing competition from domestic rival Tata Motors, which has narrowed the gap to just 0.2 percentage points. To maintain its position, Hyundai plans to introduce five electric vehicle models by 2030, starting with an electric version of its Creta SUV in January 2025.
Chairman Chung Euisun met with Prime Minister Narendra Modi ahead of the listing, pledging support for India’s manufacturing initiatives. The IPO involved selling a 17.5% stake in the Indian unit through a combination of new and existing shares.
