Hyundai Motor India Ltd IPO

The Company has been the second largest auto OEM since Fiscal 2009 in the Indian passenger vehicles market in terms of domestic sales volumes, according to the CRISIL Report.

The Company has diverse portfolio of passenger vehicles across powertrains and across major passenger vehicle segments. Its current portfolio of passenger vehicles caters to a diverse customer base, such that it is able to offer something for everyone. Currently, its portfolio includes 13 passenger vehicle models (including N Line models which are the passenger vehicle models that feature sporty performance features) across all major passenger vehicle segments by body type.

The Company identifies emerging market trends in a timely manner and introduce innovative passenger vehicles and technologies to meet customer needs in India. The Company identifies emerging market trends, latent customer needs and aspirations based on its and HMCs global network, in-depth market and product research.

The Company has pan-India sales and distribution and after-sale services network offered by its dealers. As of June 30, 2024, the company had 1,377 sales outlets across 1,036 cities and towns in India and 1,561 service centres across India across 957 cities and towns in India, which has grown from 1,167 sales outlets across 873 cities and towns in India and 1,307 service centres across 814 cities and towns in India as of March 31, 2021.

The Company has digitised its customers and dealers interactions with each other and with the company. Through the myHyundai app and its website, customers can interact with the company at every stage of the passenger vehicle purchase journey and access after-sale services.

The Company has flexible and automated manufacturing capabilities. The Chennai Manufacturing Plant was amongst the few large single location passenger vehicle manufacturing plants in India in terms of production capacity as of June 2024, according to the CRISIL Report. Its passenger vehicles are based on five different platforms (four for ICE passenger vehicles and one for EVs).

The Company has an experienced management team with a track record of delivering profitable growth and superior returns.

Increases in the prices of parts and materials required for its operations could adversely affect the companys business and results of operations.

Two of its Group Companies, Kia Corporation and Kia India Private Limited, are in a similar line of business as the company which may involve conflict of interests, which could adversely impact its business.

The company depends primarily on its Group Company, Mobis India Limited (being a subsidiary of Hyundai Mobis Co., Ltd. which is specialised in after-sale parts business for HMC Group Companies), to supply spare parts for after sale services to it and the company dealers. Further, its also depend on Mobis to supply modular parts to it that the company use in the manufacturing process of passenger vehicles and parts and constituted 17.91% of its total parts and materials supplied in the three months ended June 30, 2024. Any failure by Mobis to supply these parts could adversely impact its business. Further, Mobis may engage in transactions with it and other HMC Group Companies that may give rise to conflict situations.

The company depends on a limited number of suppliers for parts and materials. Any interruption in the availability of parts and materials could adversely impact its operations. Further, any failures by its suppliers to provide parts and materials to it on time or at all, or as per the company specifications and quality standards could have an adverse impact on its ability to meet its manufacturing and delivery schedules.

The company depends on HMC, its Promoter, for the company operations, including for parts and materials (such as engines and transmission assembly) and research and development. Any adverse change in its relationship with HMC and the companies in the Hyundai Motor Group could have an adverse impact on its business, reputation, financial condition, and results of operations.

The company has entered into the Royalty Agreement with HMC, its Promoter, and termination of the Royalty Agreement could adversely impact its business and results of operations.

Any increase in the royalty fee payable by the Company to HMC, its Promoter, under the RoyaltyAgreement, including up to and exceeding the limits of 5% of the annual consolidated turnover of the Company as prescribed under the SEBI Listing Regulations, could adversely impact its profitability metrics, including the company earnings per share.

Its success depends on the company and HMCs ability to identify market trends, including technological trends, and meet evolving customer demands, while maintaining or improving its profitability. If the company is unable to do so, its sales volumes, business and results of operations would be adversely affected.

A significant portion of its sales volumes are derived from the sale of non-EV passenger vehicles, and there is no assurance that the company will be able to adopt its EV strategy successfully and cost-efficiently or at all.

Its global operations involve challenges and risks that could increase its costs, adversely affect the company results of operations and require increased time and attention from its management. Further, its primarily depends on HMC for the company exports business and revenue generated from its exports sales constitutes 22.34% and 23.70% of the company revenue from operations in Fiscal 2024 and in the three months ended June 30, 2024, and also need their prior permission for exports, including regarding the model and jurisdiction of its exports. Any failures or delay by HMC or it in accessing the export markets could have a material adverse effect on its results of operations and prospects.