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.
Commenting on HMIL sales, Mr. Tarun Garg, Whole-time Director and Chief Operating
Officer, HMIL said “We have posted an overall sales growth of 4.30% Year-on-Year in the
period of January to July 2024. SUVs continue to demonstrate a robust contribution,
accounting for 66.6% of total HMIL domestic sales. The new Hyundai CRETA achieved key
milestones of 1 Lakh unit sales till July 2024, while also achieving highest ever monthly
domestic sales of 17,350 units in July 2024.”
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.