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Why Hyundai’s IPO may have disappointed and what’s next?

Livemint · 1m

Hyundai Motor India's IPO failed to deliver immediate gains as the stock ended in the red on the first day. While opinions about the stock are mixed, understanding Hyundai's core business and the Indian passenger vehicle market is crucial for investors. The Indian PV market has been growing at a modest pace, but the potential for future growth exists as India has a low car ownership rate compared to more developed markets like China. Hyundai India's strategy of focusing on premium SUVs has paid off, with SUVs accounting for a significant portion of its sales. However, concerns such as policy decisions, capital expenditure levels, shrinking export role, and competition from Maruti Suzuki and Kia pose challenges for Hyundai's profitability and position in India. Investors are advised to carefully monitor the company's future plans before making investment decisions.