Hyundai Motor Group, the parent company of Hyundai and Kia brands, is set to make significant strides in India’s electric vehicle (EV) market. With plans to launch locally manufactured EVs by 2025, the conglomerate aims to establish a strong foothold in a sector currently dominated by Tata Motors.
Hyundai and Kia’s EV strategy
Production of Hyundai’s India-manufactured EVs will commence by the end of 2024, with a targeted launch by 2025. Similarly, Kia will introduce its India-made EV within the same timeframe. The plan includes unveiling five electric models by 2030, showcasing the group’s commitment to sustainable mobility in India.
Partnering with Exide Energy Solutions
Hyundai and Kia have chosen Exide Energy Solutions as their battery supplier for the Indian market. This strategic partnership underscores the importance of reliable and high-performance battery technology in powering the group’s EVs, ensuring optimal performance and range for Indian consumers.
Why India?
India represents a key strategic market for Hyundai Motor Group, ranking as the largest market outside North America and Europe. The group’s decision to bolster its presence in India’s nascent EV space aligns with the country’s ambitious goals for electrification and sustainable transportation. Additionally, Hyundai’s upcoming USD 3 billion IPO in India underscores the company’s long-term commitment to the market.
Expanding production capacity
Hyundai aims to ramp up production capacity to 1 million units annually by 2025, with plans to expand Kia’s capacity from 300,000 to 432,000 units. This expansion reflects the group’s confidence in terms of growth potential in India, and its determination to meet the escalating demand for both conventional and electric vehicles in the region.
Acquisition of Chevrolet plant
Earlier this year, Hyundai completed the acquisition of a former Chevrolet plant in Maharashtra, marking a significant milestone in its production expansion strategy. By repurposing existing infrastructure, the company aims to streamline manufacturing processes, and accelerate the transition towards achieving its ambitious production targets.
Euisun Chung’s visit to India
The announcements coincide with the visit of Hyundai Motor Group Executive Chair Euisun Chung to India, underscoring the strategic importance of the Indian market to the group’s global operations. Chung’s visit reaffirms the group’s commitment to India’s automotive sector, and signals its readiness to invest in the country’s burgeoning EV ecosystem.
Hyundai Motor Group’s foray into India’s electric vehicle market represents a significant step towards achieving its long-term sustainability goals while catering to the evolving needs of Indian consumers. With plans to introduce locally manufactured EVs and expand production capacity, the group is poised to play a pivotal role in shaping the future of mobility in India.