Hyundai starts EV battery production in India, with new CRETA EV first to receive local battery packs

  • Hyundai Motor India Limited (HMIL) plans to make the most of India’s electric vehicle sales boom, after it revealed a commitment to build EV battery packs at its Chennai facility.
  • The first locally-sold EV to take delivery of these battery packs will be the newly debuted Hyundai CRETA Electric, which itself is also produced within the country.
  • The two moves align with HMIL’s goals to achieve the government’s ‘Make in India’ initiative, which includes financial incentives for firms who base manufacturing within India.

Hyundai moves more EV component production to India

The new battery pack assembly plant, in Chennai, Tamil Nadu, will have an annual production capacity of 75,000 battery packs once phase one of the factory is in full operation. It’ll be able to produce various types of battery packs, including lithium-iron-phosphate (LFP) and lithium-nickel-manganese-cobalt oxide (NMC) packs. This new location for EV battery production, along with previous supply chain actions taken by HMIL, now means the firm has achieved up to 92% localisation in manufacturing in the country. Electric car-related components such as the alloy wheels and disc brakes are already being 100% manufactured within India.

This ongoing effort for production localisation has already seen HMIL save $672 million in forex related costs since 2019, which will of course reduce battery costs for HMIL in the long term – then translating into more affordable EVs offered in the region.

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The new CRETA Electric is being priced from 1,799,000 IND ($20,781). This hints at the arrival of more cheap EVs from Hyundai in the future, to compete with more affordable offerings from rivals. Electric vehicle sales in the country are set to grow to annual sales figures of 10 million units, by 2030, while the government has set a target of 30% EV market share by 2030.

Mr. Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director and Chief Manufacturing Officer at HMIL, commented on the move:

“HMIL’s indigenisation efforts are deeply in sync with Government of India’s ‘Atmanirbhar Bharat’ and ‘Make-in-India’ initiatives, and our localisation strategy strives to constantly leverage India’s rich resources, skilled workforce and advanced engineering prowess, to develop world-class technology domestically. Commissioning of the HMIL and Mobis India Limited’s battery-pack assembly plant is a key milestone in our localisation and EV roadmap. The Hyundai CRETA Electric becomes the first Hyundai EV manufactured in India to come equipped with battery-packs assembled at this very plant, making it a true game-changer.”

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