Hyundai To Make Electric Car Components In India, Will Help Drive Down Prices For Buyers
Hyundai Motor Co had earlier announced its plans to bring electric vehicle offerings in the Indian market. Now it seems that the company will be making parts of these EVs within the country as it seeks the possibility of manufacturing EV components in India. Hyundai will join a short list of vehicle manufacturers in the country which have expressed their intention to locally produce EV components.
Hyundai Motor Co. had earlier announced its plans to bring electric vehicle offerings in the Indian market. Now it seems that the company will be making parts of these EVs within the country, as it seeks the possibility of manufacturing some EV components in India.
Hyundai recently revealed that it is already in talks with strategic partners to invest in the production of components for electric vehicles. ¡°The procurement division of our parent company is studying the possibility with some of the suppliers for manufacturing components of electric vehicles in India,¡± said Seon Seob Kim, managing director, Hyundai Motor India Ltd.
With this move, Hyundai will join a short list of vehicle manufacturers in the country, after Mahindra and Mahindra Ltd and Suzuki Motor Co., which have expressed their intention to locally produce EV components such as lithium-ion batteries and electric powertrains.
Hyundai Kona (Image: Hyundai)
The idea is in line with the company¡¯s aim of bringing in its first EV product to the country within 2019. Kim says that the car will be brought in a complete knock-down (CKD) form and will then be assembled in Hyundai¡¯s Chennai plant.
In addition to the plans of having an indigenous production of EV components for the Indian market, Hyundai is also looking to introduce its hybrid offerings in the country. ¡°We also have our hybrid vehicles in South Korea and the US, and will bring them to India when the market is ready," said Kim. He believes that with the ongoing transition from IC engines, hybrids will soon have an ample demand in the country. Central government¡¯s recently introduced FAME-II will also help with this, as the scheme offers support for 10,000 units of hybrid vehicles over the next three years.
Hyundai Kona (Image: Hyundai)
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As and when the company enters the Indian EV market with its strategy, the phase will mark an important step towards the phasing out of IC engines. Local production of EV components will help in bringing down the cost of these EVs, increasing their chances of adoption in the country. And as the transition takes place, the hybrid offerings from the South Korean car maker will help the users become accustomed to the experience of owning an electric vehicle, while still offering the benefits of an IC engine one.
