Hyundai Motor India has taken a significant step by seeking regulatory approval to list on the Mumbai stock market. This move positions Hyundai to potentially orchestrate the largest IPO in the history of the South Asian nation. As the world’s third-largest car market, India stands as a battleground for automotive giants, with Hyundai, Maruti Suzuki, and Tata Motors vying for dominance.
Hyundai, which entered the Indian market in 1996, has cemented its status as the second-largest car manufacturer in the country. With a substantial 15% market share of the 4.2 million passenger vehicles sold in fiscal year 2024, Hyundai is a formidable player. The company’s production prowess is anchored in its Tamil Nadu plant, which boasts an annual capacity of over 820,000 units. This capacity is set to exceed 1 million units with the acquisition of a second plant in Western India, reflecting Hyundai’s ambitious expansion plans.
The company’s product lineup in India includes popular models like the ‘Creta’ sport utility vehicle (SUV). Hyundai currently offers the IONIQ 5 as its sole imported electric vehicle (EV) model, with plans to introduce its first locally produced EV next year. This strategic shift towards EVs aligns with global automotive trends and could potentially reshape the competitive landscape in India.
Hyundai’s biggest rival in the Indian market is Maruti Suzuki, which commands a staggering 42% market share. Majority-owned by Japan’s Suzuki Motor, Maruti Suzuki went public in 2003 and operates three plants in India with a combined capacity of 2.35 million units. The company’s dominance is attributed to its extensive product range and strong brand loyalty among Indian consumers.
Tata Motors, the third-largest car manufacturer in India by sales, has a significant presence in the automotive sector. Debuting on the market in 1955, Tata Motors operates from two major hubs in Pune, Maharashtra, and Sanand, Gujarat. The combined production capacity of these facilities exceeds 1 million units annually. The success of models like the Nexon and Punch has driven Tata’s market share to 14%, just behind Hyundai. Tata’s focus on innovation and quality has made it a formidable competitor in the SUV segment.
Mahindra & Mahindra, another key player, is India’s fourth-largest car manufacturer. As part of the diversified Mahindra Group, it has a substantial presence in the SUV market. Listed on the Mumbai stock exchange since 1956, Mahindra produces its vehicles in Pune and boasts an annual capacity of around 588,000 units. The company’s portfolio includes popular models such as the Scorpio and XUV700, making it the largest SUV manufacturer by revenue in India. Mahindra is also expanding its footprint in the EV segment, with plans to launch a range of electric SUVs by early 2025.
The competitive dynamics of the Indian car market are underscored by the ongoing shifts towards electric mobility and increased production capacities. Hyundai’s IPO ambitions reflect a strategic move to capitalize on these trends and secure a stronger foothold in the market. As Hyundai navigates its IPO journey, its rivals Maruti Suzuki, Tata Motors, and Mahindra & Mahindra continue to fortify their positions, each contributing to the vibrant and rapidly evolving landscape of the Indian automotive industry.
Hyundai’s focus on expanding production capacity, coupled with its foray into electric vehicles, positions it well for future growth. The Indian market’s potential, driven by a growing middle class and increasing urbanization, offers a lucrative opportunity for car manufacturers. As Hyundai prepares for its IPO, the eyes of investors and industry watchers are firmly set on how this move will influence the competitive dynamics and future trajectories of India’s automotive giants.
