(CTN News) – According to reports on Monday, Hyundai Motor Co., South Korea’s leading automaker, is preparing to invest 7 billion rupees ($84 million) in the construction of an electric vehicle battery pack assembly plant in Chennai, located in the Indian state of Tamil Nadu.
Hyundai Motor India Ltd. (HMIL), the local affiliate, plans to complete the first phase of plant construction by 2025 and commence production of up to 75,000 battery packs annually.
By localizing the production of battery packs, Hyundai Motor anticipates a reduction in electric vehicle (EV) prices and an increase in the adoption of EVs in India.
The company’s objective is to raise the penetration of EVs in the domestic market from the current level of 1-2% to 20-22% by 2030, as per the reports.
Hyundai Motor has announced its plan to invest 200 billion rupees in Tamil Nadu for the next ten years. In addition to the battery pack assembly plant located in Chennai, the company is also planning to set up 100 EV charging stations throughout the southern state of India within the next five years.
The automaker is looking to increase its EV lineup to 13 models by 2030 from the current six and will also focus on enhancing research and development while supporting the development of an EV infrastructure in India.
India has emerged as one of the most rapidly expanding electric car markets globally. In 2021, the country witnessed a significant surge in EV adoption, with sales skyrocketing from 12,000 to 48,000 vehicles, as reported by the International Energy Agency (IEA) in April this year.
The city of Delhi has set an ambitious target of having 25% of all new vehicles as electric by 2024, as stated on the municipal government website.
Furthermore, India surpassed Japan to secure its position as the world’s third-largest automobile market in terms of sales volume, with a staggering 4.3 million vehicles sold last year.
In the Indian car market, Hyundai Motor claimed the fourth spot in terms of wholesale figures for the previous month, trailing behind Maruti Suzuki, Tata Motors, and Mahindra & Mahindra.
Hyundai Motor witnessed a remarkable growth of 18.5% year-on-year, selling 68,728 units in October, according to the Indian affiliate.