Hyundai Motor said on Wednesday it plans to use proceeds from a record $3 billion IPO of its Indian unit to enhance its research efforts and develop new cars, aspiring to transform the South Asian country into a manufacturing hub for emerging markets.
The IPO, which will be India's biggest ever, opens to investors next week and will involve the South Korean parent company selling up to a 17.5% stake in its Indian division, valuing the business at up to $19 billion.
While the exact allocation of the IPO proceeds is yet to be decided, Hyundai will "invest aggressively in new products, future technology and research and development capabilities of the India unit," Unsoo Kim, managing director of Hyundai's local entity, said.
"India is one of the most exciting auto markets in the world," Kim said during a press event in Mumbai, adding it was the right time to expand operations and "become a home brand, a trusted brand in India".
"(The) IPO will ensure that Hyundai Motor India is even more dedicated to success in India," he added.
Hyundai is India's second-largest carmaker by sales with about 15% share of the country's passenger vehicle market and trails only Maruti Suzuki which has a more than 40% share.
Hyundai, which entered the Indian market 28 years ago, has gained popularity for its affordable cars such as the Santro and sports-utility vehicle Creta. The company plans to launch new electric vehicles, establish charging stations and introduce hybrid cars in India starting in 2027.
