Hyundai Aims to Establish INR 700 Crore Battery Facility in Chennai by 2025
New Delhi: Hyundai Motor India wants to make battery packs in India itself. This is very important for making electric cars affordable in India. This is because many people around the world doubt electric cars and think they are too expensive to buy, as a source said.
Less than 2% of EVs are now sold in India, but there will be a spark that will accelerate adoption. The main factor that will drive EV adoption is cost—EVs must become less expensive, and localization is a crucial way to do this.
The localization of battery packs is a significant catalyst for Hyundai India. We believe we can achieve a penetration rate of 20-22% by 2030. While the government aims for 30% EV penetration by 2030, some independent analysts suggest a figure closer to 15%. Our outlook is in the range of 20-22%,” Tarun Garg, Chief Operating Officer of Hyundai Motor India Ltd, said.
The battery assembly plant in Chennai, Tamil Nadu, is expected to cost INR 700 crore, according to Gopala Krishnan, Chief Manufacturing Officer of HMIL. By 2025, it would have a first-phase capacity of 75,000 battery packs annually.
About Hyundai Motor India
Hyundai Motor India (HMIL) is a subsidiary of Hyundai Motor Company (HMC) of South Korea and the second largest car manufacturer in India. HMIL has announced its investment strategy for the next ten years, which includes launching six electric vehicles and updating its existing car and SUV platforms. Here are some details about its last two funding rounds and launches:
Furthermore, in May 2023, Hyundai announced that it will invest Rs 20,000 crore ($2.45 billion) over 10 years in Tamil Nadu to increase production and introduce new electric vehicle models. The investment will also be used to expand its research and development facility in Hyderabad and set up a new plant in Sriperumbudur.