How Hyundai zoomed to biggest IPO milestone in India, where other foreign carmakers struggled

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Key Points

The IPO (initial public offering), which is also the first from any major auto player in India in over two decades, is expected to be an important milestone for Indias auto industrya market which traditionally has not been easy for foreign auto manufacturers to crack...

Hyundai Motor India (HMI) was incorporated about 28 years ago, in 1996around the same time that two American automotive giants Ford Motor Company and General Motors, and Japanese major Honda had made their foray into the Indian market...

Hyundais success is on account of a variety of factors, such as value for money(a mixture of reliability, fuel efficiency, premium features, etc.), aspirational brand value, right portfolio strategy covering a wide spectrum of customer segments, coupled with a high share of fast-growing and dominant SUV segment, and a well spread out sales and service network, said Ashim Sharma, senior partner and head of the business performance improvement unit at Nomura Research Institute India...

The CRISIL report added that HMI has maintained its position as the second largest contributor to Indian domestic PV sales since fiscal 2009 due to continued traction for popular SUV models, like Creta and Venue, coupled with new vehicle launches and launch of upgrades of its popular models...

The IPO is an important milestone for Indias auto industry as its success will further showcase the strength and investor confidence in the Indian automotive prowess not just as a domestic market, but also as an export hub, Sharma said.. Saji John, senior research analyst at Geojit Financial Services, noted that Hyundais IPO being the first major auto IPO in India in over two decades could attract significant global investor interest..

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