Hyundai Motor India strengthens India’s electric mobility with advanced localisation strategy

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Limited (HMIL) has taken significant strides in supporting the Indian government’s vision of ‘Atmanirbhar Bharat’ and sustainable electric mobility. By achieving 92% localisation in manufacturing, the company is reshaping ‘s automotive industry, especially in the burgeoning electric vehicle (EV) market.

How Is Hyundai Supporting India’s Localisation Goals?

has cemented its role as a leader in localisation through its meticulous strategy of indigenisation. Aimed at reducing dependency on imports, this initiative has resulted in forex savings exceeding $672 million (₹5,678 crore) since 2019. At the forefront of these efforts is a state-of-the-art battery pack assembly plant in Chennai, which underscores Hyundai’s commitment to local production of EV components.

The plant, developed in partnership with Mobis India Limited, currently has an annual capacity of assembling 75,000 battery packs. It produces NMC (Lithium-Nickel-Manganese-Cobalt Oxide) and LFP (Lithium-Iron-Phosphate) batteries, optimising costs and ensuring seamless integration into Hyundai’s EV lineup.

Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director and Chief Manufacturing Officer at HMIL, described the localisation roadmap as pivotal to Hyundai’s Indian operations. He said the strategy “leverages India’s skilled workforce and advanced engineering capabilities” to build globally competitive EVs.

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Why Is the CRETA Electric a Landmark Achievement?

Hyundai’s flagship CRETA Electric, launched at the Bharat Mobility Global Expo 2025, is the first model equipped with locally assembled battery packs from the Chennai facility. This achievement not only positions Hyundai as a key player in India’s EV ecosystem but also highlights the economic and environmental benefits of localised production.

The CRETA Electric embodies Hyundai’s vision of sustainable mobility while addressing the growing demand for eco-friendly vehicles. By sourcing over 1,238 parts locally through collaborations with 194 vendors, Hyundai ensures quality, efficiency, and cost-effectiveness in its manufacturing process.

What Are the Benefits of Hyundai’s Localisation Strategy?

Hyundai’s localisation efforts bring multiple advantages to India’s automotive industry and economy:

Economic Savings: By sourcing key components domestically, Hyundai has significantly reduced foreign exchange outflow, contributing to national economic resilience.

Employment Opportunities: The localisation initiatives have generated over 1,400 direct jobs, empowering local communities and boosting workforce engagement.

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Supply Chain Development: Hyundai has facilitated the growth of an extensive supply chain network, enabling local vendors to achieve global standards in production and quality.

Technology Advancements: By localising high-tech components such as Tyre Pressure Monitoring Systems (TPMS) and catalytic converters, Hyundai is driving technological innovation in India.

How Does Hyundai Ensure Sustainable Growth in EV Manufacturing?

Hyundai’s localisation roadmap is closely tied to its broader sustainability goals. The company has invested heavily in green technologies and eco-friendly manufacturing processes. For instance, the reduces the carbon footprint associated with importing components.

The plant’s operational efficiency is further enhanced by its capacity to adapt to future battery technologies, ensuring long-term relevance in the dynamic EV sector. Additionally, Hyundai’s upcoming manufacturing plant in Talegaon, Maharashtra, is expected to deepen its local supplier network, reinforcing its localisation commitment.

What Does Hyundai’s Localisation Strategy Mean for the Industry?

Hyundai’s success in localising EV components marks a turning point for India’s automotive landscape. By aligning its goals with government initiatives such as ‘Make-in-India,’ Hyundai is driving the country’s transition towards self-reliance and sustainable mobility.

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Experts believe that Hyundai’s strategy could serve as a blueprint for other manufacturers seeking to expand their EV operations in India. With increasing consumer demand for electric vehicles, localised production is poised to reduce costs, improve availability, and accelerate the adoption of cleaner technologies.

Hyundai’s Role in India’s Electric Mobility Future

Hyundai Motor India Limited’s localisation strategy is a bold step towards a sustainable and self-reliant automotive industry. By integrating local resources, fostering innovation, and creating job opportunities, Hyundai is not only advancing its EV ambitions but also contributing to India’s economic growth.

With landmark achievements like the CRETA Electric and an unwavering commitment to indigenisation, Hyundai is set to lead the charge in transforming India’s electric mobility landscape.


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