Hyundai flags concerns with 'changes' by Indian govt ahead of planned Rs 25,000 crore IPO
Hyundai, which plans to raise Rs 25,000 crore through the Indian stock market by selling a 17% equity stake in local unit, has raised concerns about the «frequent changes» in government policy, stating that such moves can impact both investment flows into India and the speed of technological advancements.
Having invested nearly Rs 30,000 crore in India since starting operations in 1996, the leading car manufacturer from Korea stressed the importance of stable policies. They believe that consistent government guidelines are crucial for confidently making the necessary technological upgrades mandated by the government, ToI reported.
«Another challenge that the industry is facing is frequent changes in policies, which make it difficult for auto industry stakeholders not only to ensure adherence but also commit investments,» the company noted in its Draft Red Herring Prospectus submitted to market regulator SEBI. «Overall policy stability and transparency will be required going forward to ensure smooth technology transition and localisation in the country,» it added.
Hyundai plans to invest Rs 32,000 crore more in India in the coming years. This investment will focus on launching electronic vehicles, building the necessary infrastructure for green technologies, and boosting production capacity.
The company highlighted that electric vehicles (EVs) will be a primary focus. Hyundai aims to localise the manufacturing of electric vehicles for the mainstream, high-volume market.
However, the draft prospectus also
