Hyundai Motor India Faces Sales Decline Amidst IPO Preparations

Hyundai Motor India Limited (HMIL) reported a slight decline in total sales for July 2024, casting a shadow over the company’s upcoming IPO. While the automaker managed to achieve a year-to-date growth of 4.30% for the January-July period, the recent slowdown in sales is a cause for concern.

HMIL’s total sales in July 2024 stood at 64,563 units, a decrease of 3.33% compared to the same period last year. Despite the overall decline, SUVs continued to be the backbone of HMIL’s sales, with the newly launched Creta emerging as a star performer, crossing the one lakh sales milestone since its launch in January 2024.

“While we have registered a positive year-to-date growth, the slowdown in July is a temporary setback,” said Mr. Tarun Garg, Whole-time Director and Chief Operating Officer, of HMIL. “We remain confident in the long-term prospects of the Indian automotive market and believe that our strong brand equity and diverse product portfolio will drive future growth.”

The company’s upcoming IPO, which is expected to be one of India’s largest, will be closely watched by investors. The recent sales decline could impact investor sentiment, although HMIL’s strong market position and the growing popularity of SUVs are expected to mitigate some of the concerns.

Hyundai Motor India has filed draft papers for its IPO, aiming to raise approximately $3 billion. The proceeds from the IPO will be utilized to fund the company’s expansion plans, including investments in electric vehicle technology and manufacturing capacity.

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