Hyundai Motor Group Executive Chair Chung Euisun delivers a speech in celebration of the carmaker's stock market listing in India, at the headquarters of the National Securities Exchange of India, Tuesday. Courtesy of Hyundai Motor

MUMBAI — Hyundai Motor made its overseas stock market debut in India, Tuesday, achieving the largest initial public offering (IPO) subscription in the country, valued at $3.3 billion (4.5 trillion won).

The IPO of the automaker's Indian subsidiary, Hyundai Motor India, marks a strategic effort to establish the region as a key hub for the automaker's exports to other emerging markets. The capital raised from the listing will be utilized to expand the production capacity of Hyundai Motor's plants in India, the automaker said.

The latest decision comes as India gains increasing geopolitical significance as a potential cash cow for many global carmakers, especially as major automotive markets in North America and Europe face intensified competition.

Hyundai Motor selected India as its second listing target because of the country's unique regional characteristics.

The carmaker described India as a "strategic export hub" for its expansion into the Middle East, South Asia, Southeast Asia, and South America — regions characterized by lower competition and significant growth potential.

"Today's IPO shows that Hyundai Motor India is a key part of India," Hyundai Motor Group Executive Chair Chung Euisun said during a celebratory speech at the National Stock Exchange of India (NSE).

"It demonstrates our commitment to this great nation and ensures that our shareholders and Hyundai Motor India will continue to grow together."

Hyundai Motor has created over 250,000 jobs in India through sizable investments and enhancing its research and development capabilities in the market, according to Chung.

The head of the global carmaker also promised to ensure transparency in decision-making by following strict governance standards.

"Through its board of directors, Hyundai Motor India will make prudent, transparent and timely decisions," Chung said. "Our commitment to localization will also continue, based on the spirit of collaboration and shared growth. Our commitment to being a pioneer in future technologies will continue as well right here in India."

Hyundai Motor entered the Indian market in 1996 and became the country's second-largest automaker by vehicle sales last year.

As the global auto industry undergoes a significant transition toward the mass adoption of electric vehicles (EVs), Hyundai Motor said it is proactively working to expand its EV market share in India. To achieve this, the company plans to increase overall investments to localize its EV supply chains in the country and develop a comprehensive charging infrastructure across India.

The carmaker plans to launch its locally produced EV, the Creta EV, in January 2025, aiming to continue the success of the electric version of the small SUV. Hyundai set a new sales record in India in 2023, with over 600,000 vehicles sold.

Hyundai Motor vehicles are assembled at its manufacturing facility in India's eastern city of Chennai in this file photo. Courtesy of Hyundai Motor

The carmaker said it also aims to build a complete vehicle production chain in India.

Hyundai Motor India's main manufacturing facility is located in the country's eastern city of Chennai. The plant can produce more than 820,000 vehicles annually.

The automaker is renovating production lines at a new plant in Pune, which will feature Hyundai's smart manufacturing systems. Hyundai Motor acquired this facility from General Motors last year to enhance its expansion in the Indian market and increase its total manufacturing capacity to over 1 million vehicles annually once the renovations are complete.

By 2028, the combined production capacity of Hyundai Motor's factories in India will expand to 1.5 million vehicles a year, according to Hyundai Motor.

Hundreds of officials from the automaker, including Hyundai Motor CEO Chang Jae-hoon and Hyundai Motor India Chief Operating Officer Tarun Garg, participated in the event to celebrate the carmaker's landmark listing in India.

Shares of Hyundai Motor fluctuated on the first trading day on the NSE. The price surged to a high of 1,961.33 Indian rupees ($23.33) shortly after the listing but later declined to below 1,860 rupees.