Hyundai is investing $ 530 million to bring selected vehicles to India | Business and Economic Affairs
India’s second-largest car manufacturer has introduced six low-cost and high-end electric models, including SUVs and sedans.
South Korea’s Hyundai Motor Co. plans to invest $ 40 billion ($ 530m) in the development of six electric vehicles in India by 2028, forcing a smooth operation in one of the world’s most polluted cities.
Hyundai, India’s second-largest car manufacturer, will introduce low-cost and electric-powered models, including SUVs and sedans, starting with its first electric vehicle (EV) in 2022, said Tarun Garg, Hyundai’s marketing and sales manager. Motor India, Wednesday.
“We want to be a major contributor to the EV issue in India,” Garg told Reuters.
The money will be invested in research and development to establish six vehicles, the Indian Hyundai arm said in a statement.
Strict regulations imposed by governments are encouraging car manufacturers around the world to sell EVs, sales expected to rise to nearly a quarter of all cars worldwide by 2030 from about 2 percent today.
In India, EVs have less than 1 percent of all car sales, but the government wants to share 30 percent by 2030.
Electric push
Hyundai plans are also coming as global automaker Tesla Inc planning to launch its vehicles in India and has been urging the government to reduce the cost of EVs.
Hyundai connects with its competitors Tata Motors and Mahindra & Mahindra by throwing its weight behind EVs at a time when India is pushing car manufacturers to go for electricity, as it seems to be reducing pollution and exporting fuel. The country’s top car manufacturer, Maruti Suzuki, is betting on more fuel and hybrid technology, and hopes to launch EVs from 2025.
Hyundai’s EVs are either built on its dedicated global power platform (E-GMP), which plans to bring it to India, or on a modified platform where it builds its fuel tanks, Garg said.
The vehicles built on its dedicated electric tower will be 800 kilometers (497 miles), while the others will be able to run 350 to 400 kilometers (217 to 249 miles) at one cost, he said.
The company in 2019 launched its Kona EV in India but sales were slow because its price was high and production equipment was not needed at the time.
Garg said Kona taught the company the importance of making its EVs cheaper, while also offering a variety of payment options.
Hyundai is in talks with dealers to acquire and manufacture equipment for its EVs, which will enable the cars to be purchased. In addition to providing home chargers, Hyundai is also looking at developing connectivity solutions to provide charging equipment, Garg said.
“Kona was about to test water in India. What we have learned has given us confidence that we can do this,” he said.
