Hyundai’s ‘landmark’ US$3 billion India IPO signals market confidence

The time between large IPOs appeared appears to have been shortening in recent years, according to Pranav Haldea, managing director of Prime Database, which specialises in major financial market data.

Puneet Gupta, director of mobility at S&P Global, said Hyundai was looking to expand in India because it was expected to be the only country among the world’s five biggest car markets to grow over the next 10 years.

“The Indian market is at an inflection point, whether in terms of density of car sales or new technology like electric vehicles and hybrids,” said Gupta, adding that a government programme providing productivity-linked incentives for manufacturers had encouraged more investments by foreign companies.

New Delhi has offered other financial sweeteners such as tax breaks, cheaper rentals and discounted electricity charges over the past three years to attract more manufacturing investments.

With India’s per capita income projected to more than double over the next decade, Gupta said the aspiration to own a car will grow correspondingly.

Hyundai sold around 600,000 cars and produced around 765,000 in India last year. The South Asian nation is also an important export base for the company.

Upon reaching a sales milestone of 1 million cars, Hyundai would likely expand its facilities in India in areas such as research and development, Gupta said. Hyundai has pioneered innovative features such as new engine technology and panoramic sunroofs in the cars it sells in India.

Gupta said that despite Hyundai’s strong performance in the Indian market, the company needs to launch more electric and hybrid vehicles to increase its sales.

“Hyundai needs a lot of investments to expand its vehicle capacity and investment in new vehicles,” he