As Hyundai Motor gears up for India’s largest-ever Initial Public Offering (IPO), the company finds itself at a pivotal moment in its journey. With a valuation expected between ₹1.5 lakh crore and ₹1.7 lakh crore, Hyundai’s upcoming ₹25,000 crore IPO marks a significant milestone in the company’s 25-year history in India.

While Hyundai’s position as India’s second-largest car maker is undisputed, BVR Subbu, Former President of Hyundai India, warned that Hyundai faces the critical challenge of maintaining its youthful spirit and consumer-centric approach amid increasing scale and complexity.

Speaking to CNBC-TV18, Subbu noted that in the early days of Hyundai, the company was characterised by its youthful energy and agility. Subbu recalls, “Hyundai was a challenger, a very youthful, vibrant, young company with a lot of ambition.” This nimbleness allowed Hyundai to listen to its consumers and adapt quickly to market demands. However, as companies grow, they often lose this agility, becoming “stodgy” as they transition into middle age, Subbu said.

According to Subbu, one of the most pressing challenges for Hyundai lies in its technology leadership. Historically, Hyundai set the benchmark for innovation in the Indian automotive sector, introducing advanced technologies when competitors were still focused on outdated models. Subbu recalls, “Hyundai was the absolute leader in technology,” mentioning its early adoption of MPFI engines and common rail diesel technology.

However, he pointed out that this leadership position is now under threat, particularly in the hybrid segment, where competitors like Toyota have taken the lead. He added that the performance of Hyundai’s popular model, the Creta, in real-world fuel efficiency, raises concerns about the company’s ability to maintain its competitive edge without a strong hybrid offering.

Also Read: Former Hyundai India President BVR Subbu does not see EVs taking off in India

Hyundai’s IPO comes at a time when the automotive industry is facing a challenging landscape, with an anticipated growth of only 3% in FY25. Despite its strong market share and a robust portfolio of SUVs, including the Creta, Hyundai must navigate a competitive environment dominated by market leader Maruti Suzuki and emerging players like Tata Motors.

Also Read: BVR Subbu on Hyundai India’s $3 billion IPO: ‘Going public means greater scrutiny’