Hyundai Motor India Ltd (HMIL) is expected to announce its next phase of mega investment, which is estimated to be worth at least Rs 15,000 crore, The Hindu BusinessLine reported. The investment will go towards developing an ecosystem for electric vehicles manufacturing as well as alternative fuel technologies like hydrogen mobility.
A memorandum of understanding (MoU) for the proposed large investment is going to be signed on Thursday, May 11, by HMIL, said the report.
According to the sources in the Tamil Nadu government, the proposed investments of Rs 15,000 crore to Rs 20,000 crore would be spread over the next seven to 10 years.
So far, HMIL has invested over $4 billion in the nation. As the second-largest factory outside of Korea, the Hyundai Group's factory in Sriperumbudur, near Chennai, can produce 7,40,000 cars annually and is the company's first fully integrated production facility. Additionally, it is India's top exporter of passenger vehicles.
The company sold 700,811 units in total as of 2022, an increase of 10.3 per cent over 2021 sales. Sales of 552,511 domestic units and 148,300 export units made up the total volumes in 2022.
The ratings and research firm CRISIL reports that Hyundai reported operating revenue of Rs 47,043 crore for the year ended March 31, 2022, up from Rs 42,410 crore in FY21.
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Growing demand for EVs
The Hyundai Group announced last month that it would 'significantly expand' the number of EVs sold worldwide to 3.64 million units by 2030 as part of its goal to rank among the top three EV manufacturers in the world by that time through the combined sales of Hyundai Motor, Kia, and Genesis electric models. In an effort to meet the growing demand for EVs, the group also plans to offer a total of 31 EV models.
In addition, the group has been working on fuel-cell vehicles and is placing a significant wager on hydrogen mobility.
EV race heats up
India's electric PV penetration is currently estimated to be two per cent. More than 40,000 electric PVs (including electric cars and SUVs) were sold during the previous fiscal, with Tata Motors accounting for about 80 per cent of the share in total volumes.
To accelerate the adoption of EVs, more manufacturers are planning to introduce electric vehicles in the sub-Rs 10 lakh price range. The cheapest electric hatchback currently available in India is the new MG Motor India Comet, which has an manufacturer's suggested retail price (MSRP) of Rs 7.98 lakh. Tata’s electric hatchback Tiago comes at a starting price of Rs 8.69 lakh.
HMIL currently offers the electric car Kona and an all-electric SUV Ioniq 5 in premium categories. However, it has announced the battery electric vehicle (BEV) Platform E-GMP (Electric Global Modular Platform) for India. Ioniq5 was the first model introduced on the E-GMP Platform.
