Hyundai Motor India Ltd intends to launch four new electric vehicle (EV) models in the near future, including an electric version of its popular Creta SUV by the last quarter of fiscal year 2025. This move is part of Hyundai’s strategy to cater to different price segments in the Indian market and align with evolving consumer demand for EVs.
Currently, Hyundai sells two EV models in India: the IONIQ5 and Kona Electric, priced at approximately Rs 45 lakh and Rs 24 lakh respectively. Looking ahead, the company aims to enhance the affordability of its EVs by focusing on local production of critical components such as battery packs, power electronics, and drivetrain. This localisation strategy is expected to reduce import costs and make Hyundai’s EVs more competitive in pricing.
Infrastructure Development
To support its EV expansion plans, Hyundai has leased a section of its Chennai Manufacturing Plant to Mobis, a Hyundai Motor Company group firm, for the assembly of EV batteries. This collaboration aims to bolster local production capabilities and supply chain efficiency. Additionally, Hyundai is exploring partnerships with both local and global vendors for EV power electronics to further strengthen its localisation efforts.
Hyundai also aims to develop the EV infrastructure in India by establishing more charging stations across cities and highways. As of March 31, 2024, the company has already set up 11 fast charging stations in India and plans to expand this network to encourage widespread adoption of EVs.
Government Initiatives
In its initial public offering (IPO) filing with Sebi, Hyundai highlighted the challenges facing the automotive industry, including policy uncertainties and compliance issues. Despite these challenges, Hyundai remains committed to its goal of localisation and reducing import dependence through government initiatives like the Production Linked Incentive (PLI) scheme and ‘Make in India’.
Overall, Hyundai’s entry into the EV market with locally produced models is expected to diversify its product portfolio and strengthen its position in the Indian automotive sector.
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