Nomura roots for valuation premium for Hyundai Motor India over rival Maruti Suzuki

Hyundai Motor India's IPO is expected to be launched in October.

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26 Aug, 2025 12:21

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The market regulator Securities and Exchanges Board of India has given a greenlight for the
public offer of Hyundai Motor India, making way for the launch of the largest IPO in India’s history, aiming to raise $3 billion. Moneycontrol was the first to report that the company's IPO is likely to be launched in October, targeting a valuation of around $18 billion-$20 billion.

While further details of the IPO, such as the pricing and timeline, is yet to be released, brokerage firm Nomura feels Hyundai Motor India deserves a valuation premium as compared to its biggest rival in the Indian market--Maruti Suzuki India. The brokerage house's stance on the matter is based on the ongoing market share decline for Maruti Suzuki India.

Maruti Suzuki is the biggest automaker in India in terms of the domestic wholesale units sold (according to SIAM data), clenching a 41 percent market share with its market cap at $48 billion, commanding a 12 month forward PE of 22.6 times its estimated FY25 earnings. However, the company is feeling the heat of rising competition and witnessing market share decline, which is seen as a positive for Hyundai Motor India, the second largest automaker in the country.

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As India’s second-largest automaker, Hyundai Motor has maintained a steady market share of 15-17 percent since 2008. In 2023, the company achieved its highest-ever domestic sales, reaching 6,02,000 units—a 9 percent year-on-year growth. This impressive performance was fueled by the popularity of its compact and mid-size SUVs, particularly the Creta, Exter, and Venue models, Nomura noted.

Looking ahead, Nomura forecasts renewed growth momentum for Hyundai Motor India in 2025-26, driven by the launch of new models, including the Creta EV in 2025 and a petrol-hybrid SUV to be produced at the recently acquired General Motors plant in Talegaon by 2026.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.