Hyundai Motor India seems to be preparing in full swing for the Indian market. This can be gauged from the opening of IPO worth Rs 27,870 crore on October 15. This IPO is the biggest IPO in India so far. According to Livemint, the company has fixed the price band of shares in this IPO from Rs 1865 to Rs 1960 per share. As of 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 whether Hyundai Motor India is 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 financially and strategically on this segment and has achieved considerable 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 made the competition even more intense. Of course, this IPO of the company is an important step, but its long-term success will depend on proving itself better in the competitive environment.
What are the strengths of the company?
Hyundai Motor India's extensive service network and strong financial performance have kept the company as the SUV segment leader. The company's market share in domestic sales of SUVs has been continuously increasing. The company's market share in total SUV sales is projected to be 52 percent in fiscal year 2022, 53.2 percent in fiscal year 2023, 63.2 percent in fiscal year 2024 and 67.4 percent in fiscal year 2025. The company is also in a very strong position in terms of service network. The company also has a better position in terms of average number of service outlets per sales outlet. If Maruti Suzuki's average 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 industries 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 greater opportunity for Hyundai Motor India. The growth trend of the SUV segment has been much better in the last five years.
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