Hyundai India Accounts For Nearly A Fourth Of Carmaker’s Global Sales

Nearly one in four Hyundai cars are sold in India now. A local IPO isn’t a pipedream then.

Global sales of Hyundai Motor Co. Ltd. rose 3.3% over the previous year to 345,840 units in April 2024, according to a company statement Thursday. But what’s interesting is that India volumes match up to those in the home market of South Korea.

In South Korea, the carmaker sold 63,733 units—a decline of 4.4% year-on-year. In India, sales volume rose 10% year-on-year to 63,701 units. That includes 50,201 cars sold locally and 13,500 cars made for exports.

“In April 2024, Hyundai Motor India achieved a fourth consecutive month of 50,000-plus units in domestic sales,” Tarun Garg, chief operating officer of India operations, said in a statement on May 1. “Driven by models like the Creta, Venue and Exter, SUVs continued to be a growth driver contributing 67% of domestic sales.”

Hyundai Motor acknowledged the contribution.

“With the brand witnessing solid sales momentum in North and South America, and India, sales outside South Korea increased by 5.2% in April to 282,107 units,” according to the statement released on May 2. “In South Korea, Hyundai Motor sold 63,733 units in April, a decrease of 4.4% compared with the same month last year.”

The sales data assumes significance, especially amid media reports that Hyundai Motor is planning an initial public offering of its India unit some time later this year.

According to Bloomberg, Hyundai Motor has hired Citigroup Inc. and JPMorgan Chase & Co. for an India IPO to raise about $2.5 billion. That would rank among the country’s biggest listings ever. The fundraising would value Hyundai Motor India at up to $30 billion, which is more than half of the market capitalisation of the parent firm in South Korea but still less than that of Maruti Suzuki India Ltd. and Tata Motors Ltd. at more than $40 billion each.

A Hyundai India IPO would boost the Creta maker’s expansion plans in a country where it has operated for more than 25 years. India, itself, has emerged as the third largest auto market in the world, overtaking Japan. A listing would also reduce the India unit’s dependence on the parent firm for funds.

“India will become the ground to raise money for local projects. Hyundai understands the market dynamics,” Reuters quoted S&P Global Mobility’s Gaurav Vangaal as saying.

An influx of primary capital will also allow Hyundai India to build its EV infrastructure here.

Hyundai India plans to launch its first mass-market electric car early next year. By 2030, five more such models are planned, COO Garg said on Wednesday. It already assembles the Ioniq 5 and Kona electric cars locally—as many as 1,800 of these were sold last year. 

Additionally, Hyundai Motor Co. and sister company Kia Corp. have partnered with Exide Energy Solutions Ltd.—a unit of India’s largest battery maker Exide Industries Ltd.—for EV battery localisation.

In April, Hyundai Motor sold 19,000 electric cars globally. It now plans to step up its EV drive by launching models tailored to regional geographies.