Hyundai Motor’s Strong Performance from U.S. and Indian Markets Amid Slowing Global Growth

Hyundai Motor’s (KRX: 005380) Indian subsidiary, Hyundai Motor India has launched its long-anticipated initial public offering (IPO), marking the largest IPO in India since the Life Insurance Corporation’s (NSE: LICI) record-breaking listing in 2022. Shares are set to debut on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on October 22, 2024, positioning it as the biggest IPO globally this year and the first automotive listing in India in over two decades.

India accounts for 8.4% of the global revenue for Hyundai Motors, the parent company of Hyundai Motor India. 2024 sales from the Indian market are projected to reach KR₩11.7 trillion, according to Visible Alpha consensus estimates on the parent company —a year-on-year increase of +8.4%. Despite this growth, Hyundai’s global revenue expansion is expected to slow, with 2024 forecasts estimating a rise of +6.8%, down from +14.4% last year, as the global economic downturn continues to weigh on vehicle demand.

Hyundai’s automobile segment is projected to experience a more moderate but still solid revenue growth of +4.2% in 2024, down from the robust +14.8% seen in 2023. This momentum is expected to be fueled by steady demand in the U.S.—Hyundai’s biggest market outside Korea—where revenues are forecast to surge by +10.8%, reaching KR₩15.1 trillion. Analysts anticipate an enhanced mix of models, with SUVs and electric vehicles (EVs) leading the charge, alongside an uptick in production—driven by the easing of chip shortages—and the launch of new models. However, intensifying competition in the global EV space and macro uncertainty are expected to temper this growth over the next two years.