Hyundai Motor India seems to be preparing vigorously for the Indian market. This can be gauged from the opening of the IPO of Rs 27,870 crore on October 15. This IPO is the largest in India so far. According to Livemint, the company has fixed the price band of the share in this IPO from Rs 1865 to Rs 1960 per share. By 2:48 pm on the first day of bidding, the book build issue was subscribed 0.15 times, the retail portion of the public issue was booked 0.23 times, and the NII portion was subscribed 0.10 times. The QIB portion has been subscribed 0.01 times. Now the question is, is Hyundai Motor India ready for its future in India?
The company will further strengthen its SUV segment.
Hyundai Motor India is preparing to further strengthen the rapidly growing SUV segment in India. However, the company has focused a lot on this segment financially and strategically and has also had a lot of success in it. Despite this, the company is also facing strong competition in this segment. Also, the entry of new players in this segment has further intensified the competition. Of course, this IPO of the company is an important step, but success in the long term will depend on proving itself better in a competitive environment.
What is the strength of the company?
Hyundai Motor India’s extensive service network and strong financial performance have kept the company leading the SUV segment. The company’s market share in domestic SUV sales has been increasing continuously. The company’s market share in total SUV sales was recorded at 52 percent in FY 2022, 53.2 percent in FY 2023, 63.2 percent in FY 2024, and 67.4 percent in FY 2025. The company is also in a very strong position in terms of service network. The company’s position is also better in terms of the average number of service outlets per sales outlet. If the average of Maruti Suzuki is 1.3, then Hyundai Motor India’s average is 1.1.
The company has opportunities.
According to Livemint, the SUV segment is the strongest in the automotive industry and its growth is also continuing. Hyundai Motor India has led this growth. Especially the demand for mid-size SUVs is tremendous. This can create an even better opportunity for Hyundai Motor India. In the last five years, the growth trend of the SUV segment has been seen to be quite good.