Hyundai Motor India shares fell 7% on their trading debut Tuesday after a record $3.3 billion initial public offering.

The stock fell 34% when trading commenced but recovered to close at 1,819.6 rupees, down 7.16% from its IPO price, on the first day of trading in Mumbai. The company’s IPO was priced at 1,960 rupees a share, at the top end of its marketed range. Shares of parent company Hyundai Motor edged down about 1% in South Korea.

Shares of Hyundai Motor India dropped as much as 6% in their market debut on Tuesday, after a tepid response from retail investors to the pricing of the country’s largest ever initial public offering.

BENGALURU/MUMBAI (Reuters) -Hyundai Motor India shares fell 7.2% on their market debut on Tuesday after retail investors gave a lukewarm reception to the country's biggest ever initial public offering (IPO) amid concerns about a lofty valuation and an auto industry slowdown.

Hyundai has cemented its commitment to the Indian market by debuting the largest IPO ever valued at Rs 27,870 crore

Hyundai Motor India’s IPO raised $3.3 billion in the listing A key challenge for Hyundai in India would be to defend its position as the country’s No. 2 carmaker from rivals Tata Motors and Mahindra & Mahindra.

GURUGRAM, India - Abhishek Gupta, one of the top car salesmen in India, expects Hyundai Motor’s latest stock listing here will enhance its corporate identity as a more localized carmaker and present a more approachable image to customers.

On Tuesday, Hyundai Motor India listed at ₹1,934 on the National Stock Exchange, a discount to its IPO price of ₹1,960, but Citi's Rahul Saraf said many clients are encouraged by the listing.