Hyundai Motor India Ltd (HMIL), the country’s second-largest car maker, has announced significant strides in its electric vehicle (EV) localisation efforts. The company has collaborated with over 194 vendors to optimise costs and support the ‘Make-in-India’ initiative. Since 2019, the company’s efforts have yielded forex savings of $672 million (₹5,678 crore) and created over 1,400 direct jobs.

HMIL and Mobis India Limited have begun local assembly of EV battery packs at a state-of-the-art facility within HMIL’s factory near Chennai. The plant has an annual assembly capacity of 75,000 battery packs and can produce various battery types, including NMC (Lithium Nickel Manganese Cobalt Oxide) and LFP (Lithium Iron Phosphate). According to a statement, this initiative is expected to reduce battery costs and ensure a steady supply of Hyundai EVs made in India.

The Hyundai CRETA Electric, unveiled last week at the Bharat Mobility Global Expo 2025 in New Delhi, will be the first model to feature locally assembled battery packs from this facility, marking a critical step in the company’s EV roadmap.

Through close collaboration with a network of over 194 vendors, HMIL has achieved up to 92% localisation in manufacturing. More than 1,238 parts are now locally sourced, including key components like alternators, alloy wheels, disc brakes, and shark fin antennas. High-tech components such as Tyre Pressure Monitoring Systems (TPMS), panoramic sunroofs, and NOX sensors have also been successfully localised for the first time in India.

“Our localisation strategy leverages India’s resources and engineering prowess to develop world-class technology domestically. The new battery-pack assembly plant is a game-changer for the Hyundai CRETA Electric, making it the first Hyundai EV manufactured in India with locally assembled battery packs,” said Gopalakrishnan Chathapuram Sivaramakrishnan.

In addition to the Chennai facility, HMIL aims to deepen its supplier network as it prepares for production at its upcoming manufacturing plant in Talegaon, Maharashtra. With 100% localisation achieved for components such as catalytic converters, clutch assemblies, and Reverse Parking Assist Sensors (RPAS), the company seeks to enhance its self-reliance further.

Last week, Hyundai MD Unsoo Kim projected that EVs, which currently hold a 2.5% share of the passenger vehicle market, will grow to 15-20% by 2030. Following the launch of Creta Electric, the company plans to introduce three additional EVs, blending derivative designs with dedicated platforms tailored to India. While a sub-₹10 lakh EV remains unfeasible for now, Hyundai is optimistic that higher volumes and localisation will make EVs more affordable over time.

Published on January 21, 2025