Hyundai Motor Co (005380.KS) of South Korea announced on Wednesday that it would invest 40 billion rupees ($530 million) in India by 2028 to debut six electric vehicles, making a clean-driving push in a country with some of the world’s most polluted cities.
Hyundai, India’s second-largest automaker, plans to sell inexpensive and premium electric models, including SUVs and sedans, beginning in 2022 with its first electric vehicle (EV), according to Tarun Garg, Hyundai Motor India’s head of sales and marketing.
“We aim to play a fundamental role in India’s electric vehicle storey,” Garg told Reuters.
Hyundai’s Indian arm stated in a statement that the money will be spent on research and development in order to launch the six models.
Government-imposed stricter emission restrictions are driving automakers throughout the world to invest in electric vehicles, which are estimated to account for approximately a quarter of total global vehicle sales by 2030, up from about 2% now.
EVs currently account for less than 1% of total automobile sales in India, but the government hopes to increase that to 30% by 2030. Hyundai’s intentions come as Tesla Inc (TSLA.O), the world’s largest electric carmaker, prepares to introduce its vehicles in India and has been lobbying the government to decrease EV import tariffs.
Hyundai follows competitors Tata Motors (TAMO.NS) and Mahindra & Mahindra (MAHM.NS) in supporting electric vehicles at a time when India is pressuring automakers to adopt electricity in order to cut pollution and imports of gasoline. Maruti Suzuki, the country’s largest carmaker, is depending on alternative fuels and hybrid technology and plans to launch electric vehicles only in 2025.
Hyundai’s electric vehicles will be constructed on either its specialised electric global modular platform (E-GMP), which the company aims to bring to India or a modified version of its gasoline-powered vehicles, according to Garg.
According to him, automobiles built on their specific electric platform will have a range of up to 800 kilometres, while others will be able to travel 350-400 kilometres on a single charge.
The business released its Kona EV in India in 2019, but sales were slow due to the expensive price and lack of charging infrastructure at the time.
According to Garg, Kona showed the company the importance of keeping its EVs affordable while also offering a variety of charging options. Hyundai is in negotiations with vendors about sourcing and manufacturing components for its electric vehicles locally, which will help the cars become more inexpensive. Hyundai, in addition to supplying home chargers, is trying to create strategic partnerships to provide public charging stations, according to Garg.
“The purpose of Kona was to test the waters in India. The lessons we’ve learned from it have given us the confidence to go for it,” he stated.
