Hyundai's plans for a new manufacturing facility in India

author: FutureCar Staff    

Hyundai Motor Company is set to invest INR7bn (US$84m) in India to build battery packs for its battery electric vehicles (BEVs) in the country. The investment will be made by Hyundai Motor India (HMIL), the local subsidiary of Hyundai, and the first phase of the plant in Chennai is expected to be completed by 2025. The plant will have an initial capacity to produce 75,000 battery packs per year. The company aims to reduce the cost of its BEVs in India through local production and increase the demand for electric vehicles in the country. Hyundai has set a target to capture 22% of the BEV market in India by 2030.

Hyundai has ambitious plans for its global growth in the electric vehicle market. Earlier this year, the company announced its goal to sell 2 million BEVs per year worldwide by 2030. To achieve this, Hyundai plans to launch 17 new models, including 11 Hyundais and 6 Genesis vehicles. The demand for BEVs in India is rapidly increasing, although it is still at a low level. In 2022, total sales of BEVs in India reached 48,000 units in a market of 4.3 million new vehicles. Major cities in India, such as Delhi, are facing high levels of air pollution and are starting to set ambitious targets for BEV sales.

In addition to its investment in battery pack assembly, Hyundai already has two vehicle assembly plants in India. Both plants are located near Chennai in Tamil Nadu state. In the first nine months of 2023, Hyundai produced a total of 644,000 vehicles in India, with 510,000 vehicles sold locally and 134,000 vehicles exported. The plants are currently operating at full capacity. Furthermore, Hyundai recently acquired General Motors' unused vehicle manufacturing plant in Talegaon, Maharashtra, which will increase its annual production capacity to 1 million units.

Hyundai's investment in India also includes plans to invest US$2.5bn by the end of the decade. This investment will be used to expand capacity at its existing sites and establish a BEV charging network in the country. With these investments, Hyundai aims to strengthen its presence in the Indian market and contribute to the growth of the electric vehicle industry in the country.

FutureCar Staff