IPO-bound Hyundai Motor India to invest ₹32,000 crore over next 10 years; develop manufacturing hub for EMs | Stock Market News
Source: Live Mint
Hyundai Motor India has planned an investment of ₹32,000 crore in the country over the next 10 years, between 2023 and 2032, Hyundai Motor India Managing Director Unsoo Kim said during an IPO-related press conference on Wednesday, October 9, in Mumbai. The auto major is also investing ₹6,000 crore in its Pune unit.
“From a capacity point of view, a new plant in Pune is coming up, which will increase our capacity from currently 824,000 to almost close to 1.1 million, which is a 30 per cent addition in capacity by 2028. So you can see that in the next three to four years, almost 30 per cent capacity addition is happening, which will give us a lot of headroom both in domestic and exports to increase our volumes and market share,” a company official said during the press briefing.
The company is adding capacity in the electric vehicle segment and continuing to target premiumisation strategies. It sees the SUV segment as an opportunity in India. “Because we had very strong experience in the global markets, HMC had a very strong experience. So we were able to really identify that, yes, there could be a huge potential in the Indian market for SUVs. And you can see how the SUV segment has really grown,” the company said.
Hyundai will aggressively invest in new products, future advanced technology, and R&D capabilities in Indian operations. The IPO will provide local and global investors with opportunities to participate in the company’s growth story. Highlighting the strategy for rural areas, Hyundai India said that rural penetration is at the highest in its history.
“Our rural penetration is now at the highest ever in Hyundai’s history. At the same time, I’d like to break this myth that rural customers… want small cars or hatches. Let me share with you that for the January to September period, our SUV contribution in rural is equal to SUV contribution in urban,” an official said during the press briefing.
The much-awaited public issue of Hyundai Motor India will be up for subscription from October 15 to 17. The IPO will be opened for subscriptions for big institutional investors on October 14. The issue price for Hyundai India IPO is fixed at ₹1,865 to ₹1,960.
