South Korea’s Hyundai Motor Group, the parent company of Hyundai and Kia, is gearing up to introduce its first electric vehicles (EVs) manufactured in India by 2025. This strategic move aims to strengthen the group’s presence in India’s burgeoning EV market, currently dominated by Tata Motors.
In a statement released on Thursday, the Hyundai Motor Group outlined its timeline for the production and launch of locally manufactured EVs. Production of Hyundai’s India-made EVs is slated to commence by the end of 2024, with the official launch scheduled for 2025. Additionally, Kia will introduce its India-manufactured EV concurrently with Hyundai. The group further announced plans to unveil a total of five EV models by the year 2030.
Both Hyundai and Kia will leverage batteries supplied by Exide Energy Solutions to power their EVs, as previously announced earlier this month. This strategic partnership underscores the commitment of both brands to harnessing domestic resources to drive India’s electric mobility revolution.
India holds significant strategic importance for Hyundai, ranking as the largest market outside North America and Europe. The group’s Indian unit is poised for a landmark $3 billion Initial Public Offering (IPO), marking a significant milestone in its journey.
Hyundai, the second-largest carmaker in India renowned for its popular ‘Creta’ SUV, currently offers two electric models in the country, namely the Kona and IONIQ 5, both of which are imported. Similarly, Kia’s sole electric offering in India, the EV6, is also imported.
The Hyundai Motor Group reiterated its ambitious target of achieving an annual production capacity of 1 million units by 2025. As part of this initiative, capacity at Kia will be expanded to 432,000 units from the current 300,000 units. The combined capacity of Hyundai and Kia is set to reach 1.5 million units, reflecting the group’s commitment to scaling up its manufacturing capabilities.
Earlier this year, Hyundai finalized the acquisition of a former Chevrolet plant located in western Maharashtra state, as part of its strategy to ramp up production to meet the burgeoning demand in the Indian market.
The latest announcements were made during the visit of Hyundai Motor Group Executive Chair Euisun Chung to India, marking his second visit to the country in less than a year. This reaffirms the group’s strong commitment to the Indian market and its ambitious plans for expansion and growth in the region.
