Hyundai's Path to IPO: Key Advertising Milestones in India

Shah Rukh Khan, Tall-boy Santro, and the path to a $3 billion initial public offering—here’s a recap of Hyundai’s journey in India.

Hyundai Motor India (HMIL), the country’s second-largest car maker, is gearing up for a major debut on the stock market. On June 15, they filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a massive Rs 25,000 crore ($3 billion) initial public offering (IPO). This is set to be India’s largest public issue ever.

The blockbuster IPO will be an offer-for-sale (OFS) of up to 142.2 million shares, representing a 17.5% stake, by the South Korean parent company Hyundai Motor Co.

Rewinding to 1996, Hyundai entered the Indian automobile market as an unknown brand. At that time, the market was dominated by five major players: Maruti, Hindustan, Premier, Tata, and Mahindra.

Fast forward to today, and Hyundai has carved out a significant market share. As of FY24, Hyundai holds a solid 14.5% market share in the passenger car segment, trailing Maruti Suzuki's 41.7% and ahead of Tata Motors' 13.8%, according to the Society of Indian Automobile Manufacturers (SIAM).

Since its establishment, Hyundai India has made significant strides in the automotive industry, driven by its innovative advertising and marketing campaigns.

Hyundai now operates across various segments in the Indian automotive market, from small cars to compact sedans, premium hatchbacks, mid-size sedans, and SUVs of all sizes.

Insights from Industry Experts

Sai Ganesh, a brand consultant and former CMO at Dunzo, comments, "Hyundai is a great example of a successful Korean brand in India. When they entered the market, nobody knew them, and Santro's design was unusual for India. The tall-boy vehicle succeeded largely due to innovative marketing, especially with Shah Rukh Khan in the 90s. The brand effectively built awareness using SRK, which was key to their momentum. The enduring 28-year association with SRK is a testament to successful marketing, demonstrating consistency in a time when brands frequently switch ambassadors."

KV Sridhar (Pops), founder and chief creative officer of Hypercollective, adds, "Hyundai arrived when Korean brands were seeking a foothold in India. Competing with Maruti Suzuki, Hyundai focused on comfort and affordability. The Santro targeted the middle class, expanding the car market with affordable options. Hyundai's long-term association with Shah Rukh Khan has been beneficial. However, the automotive category isn't known for great advertisements, as it's typically dominated by product specifications."

The brand's ability to resonate with Indian consumers has been a cornerstone of its success, with marketing playing a crucial role in cementing its position as a leading car manufacturer in the country.

Here is a Quick Recap:

1998: The Birth of Santro and the 'Tall Boy' Revolution

Hyundai's journey in India began with the launch of the Santro in 1998, a car that redefined the small car segment. The advertising campaign featured Bollywood superstar Shah Rukh Khan, instantly connecting the brand with millions of Indian fans. The 'Tall Boy' design highlighted spaciousness and comfort, striking a chord with Indian families. This campaign was pivotal in making the Santro a household name and marked the beginning of a long-standing association with Shah Rukh Khan.

1999: Hyundai Launches Accent

Following the success of the Santro, Hyundai introduced the Accent in October 1999. The 'Sensible by Design' campaign highlighted the sedan's advanced features and superior performance. In 2000, both Santro and Accent bagged top honors in JD Power Asia Pacific's 2001 “IQS” and “APEAL” studies.

2001: Introduction of Sonata

In July 2001, Hyundai brought the first-generation Sonata to India, making an immediate impact. The luxury car, known for its high-end performance and design, has seen many new renditions since its original launch, each with its own advertising history.

2004: Embracing Modernity with the Hyundai Getz

In 2004, Hyundai introduced the Getz, a premium hatchback aimed at urban youth. The campaign showcased the car's stylish design and advanced features, appealing to young professionals. The tagline "Getz You" emphasized the car's utility, targeting a modern demographic. In December 2004, Getz was awarded “Car of the Year” by Standard Motoring Magazine.

2006: Feeling the Verna

Hyundai launched the Verna in September 2006 with the campaign "Verna, Feel It," focusing on the car's powerful engine and advanced features, positioning it as a leader in the mid-size sedan segment. The advertisements highlighted the car's performance in contrast to racehorses.

2007: The i10 and Accolades

With the launch of the i10 in 2007, Hyundai continued to innovate in the small car segment. The ‘Catch the i’ campaign featured brand ambassador SRK. In December 2007, i10 was awarded ‘Car of the Year 2008’ by Business Standard Motoring Magazine.

2008: The i20 and the Premium Compact Segment

Hyundai entered the premium compact segment with the i20 in December 2008. Launched just a month after the brand manufactured its fastest 2 million cars in India, the i20's campaign, titled "The Uber Cool," emphasized glamour and performance. In February 2009, it was named ‘Family Hatch of the Year’ by TopGear.

2014: Xcent, the Real Family Sedan

In 2014, Hyundai introduced the Xcent, aimed at the compact sedan segment. The "Real Family Sedan" campaign featured Shah Rukh Khan showcasing the car’s extra features.

2015: The Creta and the 'Perfect SUV' Campaign

The launch of the Creta in July 2015 marked Hyundai's entry into the compact SUV market. The "Perfect SUV" campaign highlighted the car's performance, advanced features, and robust design, appealing to both urban and off-road enthusiasts. Creta went on to win ‘SUV of the Year’ awards from NDTV, CNBC Overdrive, Evo Off Roads, and more.

2019: The Venue and Digital Transformation

The launch of the Hyundai Venue in 2019 marked the brand's foray into the connected SUV segment. The "Connected to Excitement" campaign leveraged digital and social media platforms extensively, marketing Venue as India's first fully-connected SUV. In December 2019, Hyundai VENUE won the Prestigious ‘Indian Car of the Year (ICOTY) 2020’ Award.

2021: The Alcazar and Family-Centric Marketing

In 2021, Hyundai introduced the Alcazar, targeting the growing demand for family-oriented SUVs. The campaign highlighted the car's spaciousness, premium features, and versatility.

2023: Hyundai’s Exter

In 2023, the brand unveiled its micro-SUV, Exter. The "Think Outside. Think Exter." campaign featured Indian cricketer Hardik Pandya. The brand also roped in Deepika Padukone as a brand ambassador alongside SRK.