Hyundai's India expansion plans

author: FutureCar Staff    

Hyundai Motor Company is set to invest INR7bn (US$84m) in India to establish a plant for assembling battery packs for battery electric vehicles (BEVs) to be manufactured in the country. The local subsidiary, Hyundai Motor India (HMIL), aims to complete the first phase of the plant's construction in Chennai by 2025, with an initial capacity of 75,000 battery packs per year. The company anticipates that local production will help reduce the cost of its BEVs in India and stimulate local demand. Hyundai has set a target of increasing its share of the BEV market from 2% to 22% by 2030 as part of its global growth plans.

Hyundai's ambition to sell 2 million BEVs annually worldwide by 2030 is supported by the launch of 17 new models, including 11 Hyundais and six Genesis vehicles. Although the demand for BEVs in India is still relatively low, it is rapidly expanding. In a market of 4.3 million new vehicles, total BEV sales were estimated to have quadrupled to 48,000 units last year. Major cities like Delhi, which are grappling with high air pollution levels, are starting to set ambitious targets for BEV sales.

Hyundai currently operates two vehicle assembly plants near Chennai in Tamil Nadu state, India. In the first nine months of 2023, the company produced a total of 644,000 vehicles, with 510,000 units sold domestically and 134,000 units exported. Both plants are running at full capacity. In September, Hyundai finalized a deal to acquire General Motors' unused vehicle manufacturing plant in Talegaon, Maharashtra, which will boost its annual production capacity from 820,000 to 1 million units. Additionally, Hyundai plans to invest US$2.5bn in India by the end of the decade to expand capacity at its existing sites and establish a BEV charging network.

FutureCar Staff