Hyundai Motor India Limited
Total Issue: ₹27870 Cr
IPO Timeline & Schedule
About Hyundai Motor India Limited
The Hyundai IPO could be the largest in Indian history! Hyundai Motor India, a subsidiary of the Korea-based Hyundai Group, was established in 1996. The company specializes in manufacturing and selling a wide range of four-wheeler passenger vehicles, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). Additionally, Hyundai produces key automotive parts such as transmissions and engines. Currently, Hyundai’s lineup includes 13 models, ranging from sedans and hatchbacks to SUVs. In FY 2024, Hyundai captured approximately 15% of the domestic car market, securing the second position behind Maruti Suzuki. As of December 31, 2023, Hyundai Motor India boasted 1,366 sales outlets and 1,550 service centres across various cities and towns in India. This marked a significant expansion from March 31, 2021, when the company operated 1,167 sales outlets and 1,307 service centres. The Daily Brief by Zerodha covers how Hyundai wants to ride the Bull Run in this video.
Key Business Strengths
- World’s third-largest auto Original Equipment Manufacturer (OEM) by passenger vehicle sales in 2023.
- Sold nearly 12 million passenger vehicles in India and through exports from 1998 to March 31, 2024.
- Second-largest auto Original Equipment Manufacturer (OEM) in the Indian market since 2009 (domestic sales volumes).
- India’s largest exporter of passenger vehicles from 2005 to the first 11 months of 2024, with the highest cumulative exports for this period.
Key Risks & Challenges
- Kia Corporation and Kia India Pvt Ltd owned by Hyundai also operate in a similar domain, which could lead to conflicts of interest.
- Centralized at the Chennai plant; disruptions, including at the upcoming Talegaon plant (operational in H2 Fiscal 2026), could impact operations and financial health.
- Significant revenue depends on SUV sales; declines in demand or production issues could negatively affect operations.
- Operations are subject to seasonal fluctuations, which impact sales and financial performance. Demand typically peaks in January-March and during the festive season, with slowdowns in April-July and December.
- Changes in tax laws could negatively affect business prospects, financial standing, operational outcomes, and cash flows.
Transparency & Informational Notice
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