Hyundai Motor India's growth engine roars on SUVs, capacity expansion

The carmaker's short-term gains may stall in neutral over high valuations

With a diversified product portfolio, entrenched market position, solid manufacturing base, and technological support from its global parent, Hyundai Motor India is poised to benefit from the steady growth trend in the underpenetrated Indian passenger vehicle (PV) market. A 63 per cent contribution from the high-growth utility vehicle (UV) segment, along with capacity expansion and product launches, is expected to help it outperform its peers in the future.

Though prospects are strong, the valuation of the Rs 27,870 crore initial public offering (IPO) at the top end of the price band appears high. The country’s second-largest PV