Hyundai Motor India, which is set to launch India’s biggest IPO soon, should be valued higher than market leader Maruti Suzuki, according to global brokerage Nomura.

What Happened: Although specific details such as pricing and the exact timeline have not yet been disclosed, brokerage firm Nomura believes Hyundai Motor India deserves a valuation premium compared to its top competitor, Maruti Suzuki India, given the latter’s ongoing decline in market share.

The market regulator Securities and Exchanges Board of India has approved the listing of Hyundai Motor India, paving the way for the largest IPO in India’s history, aimed at raising $3 billion (around ₹25,000 crore). According to reports, the IPO is expected to launch in October, with the company targeting a valuation between $18 billion and $20 billion (1.5 lakh crore-1.7 lakh crore).

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Waning Dominance: Maruti Suzuki, the largest automaker in India based on domestic wholesale units sold, holds a 41% market share and boasts a market capitalization of ₹4.16 lakh crore. However, rising competition has been chipping away at Maruti’s dominance, which analysts see as an opportunity for Hyundai Motor India, the country’s second-largest automaker.

Hyundai Motor has consistently maintained a market share of 15%-17% since 2008. In 2023, the company achieved its highest-ever domestic sales, reaching 6.02 lakh units, reflecting a 9% year-on-year growth. This success was largely driven by the strong performance of its compact and mid-size sports utility vehicles (SUVs), such as the Creta, Exter and Venue, according to Nomura.

Looking ahead, Nomura forecasts continued growth 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, which will be produced at the company's recently acquired General Motors plant in Talegaon by 2026.

Price Action: Maruti Suzuki’s share price was up 3.63% at ₹13,249.65 around noon on Thursday. The stock has gained nearly 30% so far this year.

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