Hyundai Motor India is strategically focusing on localizing battery pack production to reduce electric vehicle (EV) prices in the country, as highlighted by company officials. To overcome concerns about affordability hindering EV adoption, Tarun Garg, Chief Operating Officer of Hyundai Motor India Ltd, stressed the importance of cost reduction in driving faster EV adoption in India.
Garg emphasized the need for EV costs to decrease, stating that the current EV penetration in India is below 2%, but there’s potential for rapid acceleration. He pointed out that cost reduction, mainly through localization efforts, is crucial to make EVs more accessible.
Highlighting their commitment, Hyundai plans to invest Rs 700 crore in a battery assembly plant in Chennai, Tamil Nadu. This facility aims to produce 75,000 battery packs annually in its initial phase, scheduled to be operational by 2025.
Unsoo Kim, Chief Executive of Hyundai Motor India, acknowledged a temporary global EV market slowdown, partly attributed to the Ukraine-Russia conflict diverting European attention from environmental goals.
In India, government initiatives like the production-linked incentive (PLI) for automobiles, the Rs 18,000 crore advanced chemistry cell (ACC) battery PLI scheme, and the expansion of charging infrastructure are expected to drive EV adoption.
Hyundai, alongside major players like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra, is preparing to bolster its EV offerings in 2024-25. Hyundai specifically aims to introduce a domestically manufactured EV for the mass-premium market.