Hyundai Motor India Ltd (HMIL) is preparing for an expansion in the electric vehicle (EV) segment and ramping up its production. To this effect, the company has signed an agreement with the Tamil Nadu government for a large-scale investment of ₹20,000 crore to be spent over 10 years (2023-2032).
It may be noted that businessline had reported on Wednesday (May 10) that the South Korean passenger vehicle maker was preparing to announce its next big investment outlay in the range of ₹15,000-20,000 crore.
The proposed investment will be spent in establishing an EV battery pack assembly unit, the development of new vehicle platforms (such as EVs) and new models (Internal Combustion Engine and EV), and the ramp up of production capacity, among others.
Over the past 27 years, HMIL has invested close to ₹24,000 crore in its car manufacturing operations, which comprises two factories in Tamil Nadu. “Its proposed new investments would result in the creation of direct jobs for 15,000 people,” Tamil Nadu Chief Minister MK Stalin said.
While the company’s Chennai factory is already an export hub for ICE models, it will also be developed as an EV supply hub for export markets. Overall, the Chennai operations will become a “mother plant” to serve the needs of emerging global markets.
The company will also be investing in increasing the the production capacity at its Sriperumbudur factory near Chennai, to 8.5 lakh units per year from the current 7.7 lakh units. HMIL is expecting incremental volumes on the back of new launches such as Exter, which is likely to hit the market in the next couple of months.
A significant investment will also be made towards the development of EVs and its ecosystem. “The company will set up a state-of-the-art battery pack unit with a capacity to assemble about 178,000 units per year. HMIL will also establish 100 charging stations across 33 locations in Tamil Nadu over five years,” Unsoo Kim, MD & CEO, HMIL, said.
The company is likely to invest ₹728 crore in setting up the battery pack assembly operations. In the charging infrastructure area, it proposes to set up 5 dual ultra-fast charging stations (DC 150 KW +DC 60 KW), 10 single fast charging stations (DC 150 KW), and 85 single fast charging stations (DC 60 KW) in the State.
HMIL has planned to introduce five electric cars across segments as it aims to garner one-fifth of sales from electric products by 2032. It is following a top-down approach in the EV segment and sells two premium electric four-wheelers — Kona and Ioniq 5 — in India. The recently launched Ioniq 5, priced at about ₹45 lakh, has seen sales of about 190 units in April on the back of growing interest for EVs in the country.
Hyundai is also planning to come out with an affordable EV soon. It is actively developing a vendor base for power electric parts localisation. “The company has already roped in more than 140 new vendors for supply of parts in the emerging automotive technologies,” said Puneet Anand, Associate Vice President – Corporate Affairs, HMIL.