Hyundai to launch Made in India Kona EV soon: Will source parts locally

Hyundai plans to drive in its first EV in a complete knock-down (CKD) form in the country this year. The vehicle would be assembled at Hyundai's Chennai-based manufacturing plant.

By: | Published: April 22, 2019 11:32 AM
hyundai kona electric india launch Hyundai Kona Electric (International-spec model)

Hyundai announced previously that it will introduce electric vehicles in India, and now the manufacturer is mulling options to source EV components in India, including local manufacturing of battery parts. Furthermore, Hyundai has also said that it is awaiting better clarity in government policies when it comes to rolling out hybrid vehicles in the country. Hyundai recently revealed that it is in talks with strategic partners to invest in the production of electric vehicle components.

"We are studying various options, not only us (HMIL) in India, but even Hyundai Motor Company (HMC) procurement division is looking at it," HMIL MD and CEO S S Kim told PTI when asked if the company plans to locally manufacture batteries for EVs. The company's parent HMC is even contacting suppliers in India for battery components, he added.

Hyundai plans to drive in its first EV in a complete knock-down (CKD) form in the country this year. The vehicle would be assembled at Hyundai's Chennai-based manufacturing plant. Hyundai's very first electric vehicle in India will most likely be the Kona Electric, which may differ in specs and features in its India-spec version.

With the government pushing for local sourcing of EV components, Suzuki Motor Corp along with its partners is already in the process of constructing an automotive lithium-ion battery manufacturing plant at Hansalpur in Gujarat.

Tata Motors and Mahindra are also actively pursuing the EV segment in the country. Kim said government support is critical to support the growth of EVs in the personal mobility space.

"In many countries where the EVs are sold to private customers, they are supported by the government in terms of subsidies ... if OEMs need to push EV mobility, government push is critical, so we are expecting some more support," he added.

Hyundai Kona EV spied on test: What to expect from India’s first Electric SUV!

Under the FAME-II scheme with an outlay of Rs 10,000 crore, the government is primarily focusing on electrification of public transport. When asked about launching hybrid vehicles in the country, Kim said the company will take a decision after further policy clarity on the segment from the government.

"Once the hybrid policy and its framework is readied by the government we will also plan our activity accordingly," he said.

On establishing a new factory, Kim said the installed capacity at the company's Chennai plant is currently enough to take care of the demand. The company has added an additional capacity of 50,000 units, taking the total installed capacity at the plant to 7.5 lakh units per annum, he added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop