Hyundai Motor India Ltd (HMIL) said it will focus on localising powertrains following the localisation of battery packs and related components, as part of its commitment to developing a strong electric vehicle (EV) ecosystem in India. The second-largest carmaker in the country will be pushing ahead with its EV strategy, even as the electric car market in India continues to evolve.

In its electrification efforts, HMIL is set to introduce four new EV models, including the Creta EV (by Q4 of this financial year). The company is actively localising the EV supply chain, covering battery packs, drivetrains, and other key components, while also investing in charging infrastructure, according to Unsoo Kim, Managing Director, Hyundai Motor India, during the announcement of the company’s IPO plans.

Although Hyundai has discontinued its Kona EV in India, it currently offers one premium EV model priced above ₹40 lakh. While the Indian EV market is still emerging, HMIL anticipates strong growth by 2030, driven by government initiatives and increasing industry focus. With the support of Hyundai Motor Company’s (HMC) global EV and battery expertise, HMIL is working to establish a local EV ecosystem and has reportedly brought on board new suppliers to support its EV production efforts.

Local suppliers

“We are localising our supply chain, including battery pack assembly, and collaborating with local suppliers to enhance the EV ecosystem. We are also working on localising the EV powertrain and other associated parts. Although I can’t specify the exact number of new vendors for our EV platform, we are continuously engaging both local and global suppliers to drive this transition,” Kim stated.

In addition, HMIL has invested in a battery assembly plant in Chennai, which will have an initial capacity of 75,000 battery packs annually by next year. The company has leased part of its Chennai Manufacturing Plant to Mobis India Ltd for the assembly of EV batteries. These batteries will be supplied to Hyundai and its sister company Kia, helping to reduce import costs for battery packs.

Kim noted that the EV market is highly dynamic, with influences from geopolitical factors, changing customer preferences, and evolving government policies. Hyundai is well-prepared to adapt to these shifts, thanks to its diverse technological capabilities and strategic flexibility.

Hatchback market

Discussing the hatchback segment, Kim emphasised that despite Hyundai’s growing focus on SUVs and EVs, the company will continue to maintain a presence in the hatchback market with models like the i10 and i20.

However, the share of hatchbacks in India’s passenger vehicle (PV) sales has seen a significant decline, dropping from 47per cent in FY2019 to 27.7per cent in FY2024, while SUVs now account for 51per cent of the market, up from 23per cent in the same period. Hyundai’s market share in the hatchback segment declined from 16.4per cent in FY21 to 12.3per cent in Q1 of this fiscal year. Maruti Suzuki leads the segment with a 69per cent share (up from 66per cent in FY21), followed by Tata Motors at 12.6per cent, up from 10per cent in FY21.

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