Hyundai Motor India is gearing up for an electric vehicle (EV) revolution, aiming for a 20-22% EV penetration in the country by 2030. To make this vision a reality, the company plans to invest ₹700 crore in a battery assembly plant in Chennai, Tamil Nadu. This facility, set to be operational by 2025, will have an annual capacity of 75,000 battery packs in its initial phase. The focus on localizing battery packs is a strategic move to drive down EV prices and boost affordability, a critical factor for widespread adoption.
Tarun Garg, COO of Hyundai Motor India, highlighted the significance of cost reduction, emphasizing that EV costs need to come down for accelerated adoption. The company’s investment aligns with the Indian government’s target of 30% EV penetration by 2030, even as some analysts estimate a more conservative 15%. Hyundai’s ambitious 20-22% target positions them as a key player in India’s evolving EV landscape.
Despite global skepticism and temporary market downturns, Hyundai remains confident in the inevitability of the EV transition. Unsoo Kim, the carmaker’s CEO in India, attributed the current dip in the EV market to geopolitical factors, such as the Ukraine-Russia conflict affecting European countries’ focus on carbon dioxide reduction.
In the Indian market, EV adoption triggers are anticipated from both government initiatives and original equipment manufacturers (OEMs). The first production-linked incentive (PLI) scheme for automobiles, the advanced chemistry cell (ACC) battery PLI scheme, and the expansion of charging infrastructure are expected to pave the way for increased EV adoption. Hyundai’s plans include launching a made-in-India EV for the mass-premium market in 2025, contributing to the country’s electric mobility aspirations.