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Hyundai Motor Group Executive Chair visits India as carmaker eyes IPO
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Sources had earlier told CNBC-TV18 that Hyundai is working towards filing its Draft Red Herring Prospectus (DRHP) papers with the Securities and Exchange Board of India (SEBI) by May and is hoping to go public in the third quarter of FY25.
Hyundai Motor India plans to unveil its first locally produced electric vehicle (EV) in India next year, the carmaker said in a statement on April 25.
“Starting with the mass production of its first electric SUV model at the Chennai plant at the end of 2024, the company plans to further produce five EV models by 2030. Hyundai Motor India will also utilize its sales network hubs, expanding the number of EV charging stations to 485 by 2030,” the firm said.
Hyundai’s statement came against the backdrop of Hyundai Motor Group’s Executive Chairman, Euisun Chung’s strategic visit to India at a time when the company is looking to firm up IPO plans for the Indian market. The visit is part of Hyundai’s efforts to cement its position as a leading mobility provider in India through mid- to long-term strategies, the firm said.
Sources had earlier told CNBC-TV18 that the company is working towards filing its Draft Red Herring Prospectus (DRHP) papers with the Securities and Exchange Board of India (SEBI) by May and is hoping to go public in the third quarter of FY25.
Hyundai, which entered India 27 years ago, is among the top three car makers in India with a 15% market share. The company’s line-up of sports utility vehicles (SUVs) including Tucson, Creta, Venue and Exter are among the highest-selling SUVs in the Indian market. Hyundai India is looking to raise over $3 billion at a valuation of $30 billion. This could well be the largest-ever IPO in India.
According to the company, Chung is in India to review the Group’s mid- to long-term future mobility strategies that lay the foundation for its leadership in the Indian market and sustainable growth.
Hyundai Motor Group said it has set mid-to long-strategies to proactively respond to the Indian automotive market. Key to this is the laying of groundwork to expand production.
“Hyundai Motor India will start operating its Pune plant in the second half of next year. Located in Maharashtra, western India, the production facility was acquired from GM last year. Hyundai Motor is currently making improvements to the facility to create a production hub capable of building more than 200,000 units annually, using smart manufacturing technology and systems,” it said.
As per the statement, with the addition of the Chennai plant’s production capacity of 824,000 units, Hyundai Motor will have an annual production capacity of over one million units when combined with the Pune plant.
Meanwhile, Kia India’s yearly production capacity will also be expanded to 431,000 units within the first half of this year. Combined together, Hyundai Motor Group will have the ability to produce approximately 1.5 million units annually in India.
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