IPO-Bound Hyundai India To Expand EV Presence Starting With Creta
IPO-bound Hyundai Motor India Ltd. is betting big on India's emerging market, particularly its growing electric vehicle segment, as the auto major prepares to significantly expand its electric vehicle production and offerings.
The Creta maker is set to launch India's largest-ever IPO, targeting up to $3.3 billion in proceeds, surpassing Life Insurance Corp.'s record-setting $2.7=billion public offer in 2022.
Managing Director Unsoo Kim noted the company's long-standing success in India and spoke about its plans to deepen its local footprint.
India is one of the most important auto markets in the world. Having been successful here for over 26 years, now is the right time for us to further Indianise our operations and become more homebound.Unsoo Kim, MD of Hyundai India
Expanding EV Ecosystem
Hyundai plans to launch several new EV models, supported by a robust supply chain and localised production.
A central focus of Hyundai's EV push is the upcoming launch of the Creta EV, an all-electric version of its popular SUV model, set to debut in 2025. This is part of a broader strategy to introduce a range of EVs across various price segments. It already has the IONIQ 5 and Kona Electric models in the market.
The company is versatile in the auto market and has access to a wide range of technologies, from petrol to hydrogen fuel cells, and now EVs, said Chief Operating Officer Tarun Garg.
Our commitment to India is not just about selling cars but building an entire ecosystem. We are investing heavily in EV charging infrastructure and localising our supply chain to make our operations more sustainable and profitable.Tarun Garg, Hyundai COO
He attributed strong parentage as a huge advantage. The company is focused on localisation, which currently stands at 80%, and plans to increase it further. Hyundai's commitment to the local supply chain includes partnerships with over 2,000 suppliers, both domestic and international.
India is the only nation where we see the EV is expected to grow strongly by 2030 and due to strong initiative by the government.Unsoo Kim, MD of Hyundai India
With the Indian government's push towards cleaner, electric mobility, Hyundai's EV strategy aligns with the country's goals of achieving 30% EV penetration by 2030. "We are fully committed to making India a core part of our global EV strategy," said Kim.
"Our goal is to introduce more EVs and expand our lineup across various segments to ensure we cater to the growing demand."
Hyundai's aggressive push into EVs is supported by an increase in manufacturing capacity. The company has earmarked a portion of IPO proceeds for building the EV ecosystem.
Although the exact amount of funds that will be invested into EV remains undisclosed, the company has signed a Memorandum of Understanding worth Rs 26,000 crore with the Tamil Nadu government, which includes a portion towards EV.
India's Role As An Emerging Market
"We are positioning Hyundai India as a production hub for emerging markets like the Middle East, Africa, South Asia, and Latin America,” said Garg. Hyundai's existing exports to over 80 countries provides a natural edge against fluctuations in domestic demand, ensuring a stable revenue mix.
Kim also noted India's evolving market dynamics. “We are excited by the opportunities in India. The SUV market, for example, has shown tremendous growth, with our models contributing significantly to our success here,” he said. Hyundai's Creta, one of its top-selling SUVs, saw sales climb to 15,000 units a month, a remarkable achievement in a highly competitive market.
As Hyundai gears up for the IPO, which opens on Oct. 15 and closes on Oct. 17, the funds raised will support further investment in India's EV market, expand production capacity, and ensure Hyundai maintains its competitive edge as one of the country's top automotive players.
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