Mint Exclusive: I-banks circle Toyota for an India IPO
First, Hyundai Motor took the plunge, raising ₹27,870 crore from an Indian IPO. Next may be the turn of Toyota, the world's largest carmaker by sales.
MUMBAI : Toyota Motor Corp. has hosted Indian investment bankers at its Tokyo headquarters multiple times recently, three people directly aware of the discussions said, as they pitched for a potential listing of its local subsidiary.
The plan is to list Toyota Kirloskar Motor Ltd, the maker of Innova, Fortuner and Camry, to raise around $700-800 million, the people said on the condition of anonymity. If the initial public offering goes through, India will join countries such as the US, UK and Germany where the world's largest carmaker is locally listed. Toyota will also be the second global carmaker to trade on Indian stock exchanges, after Hyundai Motor India Ltd.
“The company is warming up to the plan of listing its India subsidiary," one of the persons cited above said. “Several meetings have been held with the (Toyota) global team that will take the strategic call," he added.
According to a second person, investment banks met Toyota Motor Corp.’s chief financial officer and another top-level executive who is responsible for the company’s strategic direction and global operations to discuss the listing plans.
“Given the successful listing of Hyundai India, other global players having a significant presence in India are now contemplating a local listing," the third person said. Given the depth of Indian capital markets, large issuances are able to sail through smoothly, giving global players the confidence to list on domestic bourses.
To be sure, while Hyundai India was fully owned by its South Korean parent until listing, Toyota Motor holds 89% in Toyota Kirloskar, with the rest held by the Kirloskar Group. This structure was established when Toyota Motor entered India in 1997 through its partnership with the Kirloskar Group.
Toyota's Indian lineup features the Innova, Hyryder, Fortuner, Hilux, Camry and Glanza. In the three decades of its India operations, the company has carved out a 7.2% market share in the country’s passenger vehicles market. However, among hybrids, a segment that Toyota pioneered globally, it holds a whopping 81% market share in India.
“The Japanese executives are key to taking a decision on the local listing. However, investment bankers have also met the company’s local management to discuss a possible listing," the third person added.
In 2024, Hyundai raised approximately ₹27,870.16 crore from its India listing. The company’s total market capitalization today stands at ₹2.10 trillion. Its shares closed at ₹2,585 on Tuesday on NSE. Other large peers such as Maruti Suzuki, Tata Motors and Mahindra & Mahindra are also listed in India.
To be sure, a formal process towards a listing is yet to begin.
However, in an emailed response, a Toyota Kirloskar spokesperson denied any such plans by the company. “We deny this information. We have no such plans and would like to refrain from offering further comments," it said.
An Autocar Professional report said Toyota Kirloskar Motor closed FY25 with its strongest-ever performance, posting a consolidated net profit of ₹5,672 crore — up 18.5% from ₹4,787 crore in FY24. Revenue from operations grew 16.2% to ₹64,895 crore, driven by higher realizations from hybrid models and expanded production. Profit before tax increased 23% to ₹6,494 crore, while the dividend payout rose sharply to ₹3,576 crore — 5.1 times higher than FY24’s ₹698 crore —signaling robust cash flows and shareholder confidence.
India’s passenger car market is poised for significant growth, driven by factors like rising incomes, better road infrastructure, and a low vehicle penetration rate. The passenger vehicles (PV) segment saw a growth of 4.9% in FY 2024-25, driven by the robust performance of utility vehicles. The share of utility vehicles within the PV segment has grown to 66%, a category in which Toyota has a substantial presence.
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