Hyundai Motor India is in the early stages of discussions to go public later this year to raise at least $3 billion, while Hyundai Motor Group plans to invest a total of $3.3 billion to develop its production facilities in India over the next several years.
Hyundai Motor Co.’s Indian branch might be valued between $25 billion and $30 billion in an IPO.
Hyundai purchased General Motors’ Talegaon facility in the western state of Maharashtra in 2023, according to the IPO report. It intends to utilize the Talegaon facility as a manufacturing base for its India-specific electric vehicles.
It inked a memorandum of understanding with the Maharashtra government last month to invest 70 billion Indian rupees ($845 million) to expand and enhance its Talegaon automobile manufacturing factory.
Hyundai’s IPO may affect Tesla sales
Elon Musk’s Tesla has been considering joining the Indian car industry for a few years, with plans to establish its first electric vehicle manufacturing in Gujarat. However, the IPO of Hyundai may pose a further challenge to Tesla’s expansion in India.
The IPO negotiations for Hyundai’s India subsidiary coincide with Tesla’s plans to enter India, and if Hyundai’s company is successful in becoming public in the nation, it may help Hyundai compete more effectively with Tesla in the Indian EV market later.
Hyundai has stated that it intends to invest over $4 billion in the Indian market over the next decade to develop new EVs, charging stations, and a battery pack assembly plant.
Over the last two decades, Hyundai has established itself as a trusted brand in India, while other foreign automakers, such as Ford Motor and General Motors, have closed their India operations. Tesla is likely to face the same fate if the Hyundai IPO meets initial expectations.
Hyundai Motor’s Plan
Hyundai’s Southeast Asian headquarters are located in India. It declared in May last year that it would invest 200 billion rupees ($2.45 billion) over the following decade in Chennai, Tamil Nadu.
Hyundai stated that it will establish a battery pack assembly factory in Chennai and build 100 quick EV charging stations across the southern state during the next five years.
It established its Indian unit in 1996 and began commercial manufacture of the Santro small hatchback, its first vehicle designed specifically for India, in 1998.
It has two factories in Chennai, Tamil Nadu, and one in Talegaon, Maharashtra. Kia Corp., its sibling firm, operates a manufacturing plant in Anantapur, Andhra Pradesh. Hyundai and Kia have sold over 9 million vehicles in India over the last 25 years and will dominate 21.3% of the Indian automobile market by the end of June 2023.
