Hyundai Motor India Ltd. (HMIL) has made headlines with its remarkable milestone of achieving 92% localisation in manufacturing, underscoring its commitment to India’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. The company’s relentless drive to reduce import dependency and boost domestic production is reshaping the landscape of India’s automotive industry.
The heart of this success lies in Hyundai's newly commissioned battery assembly facility at its Chennai plant. This state-of-the-art unit, developed in collaboration with Mobis India Ltd, has already begun operations, with the all-new Hyundai Creta Electric being the first model equipped with locally assembled battery packs. This move not only bolsters India’s electric vehicle (EV) ecosystem but also positions Hyundai as a leader in adopting sustainable, cost-effective solutions.
A Transformational Impact
Hyundai’s localisation efforts have led to foreign exchange savings of $672 million (approximately ₹5,678 crore) since 2019 and created direct employment for over 1,400 people. Gopalakrishnan Chathappan, HMIL’s Whole-time Director and Chief Manufacturing Officer, emphasized that Hyundai's strategy leverages India’s rich resources and engineering expertise to develop world-class technologies.
The new battery assembly plant, with an annual capacity of 75,000 battery packs in its initial phase, can accommodate diverse battery types, including NMC (Lithium-Nickel-Manganese-Cobalt Oxide) and LFP (Lithium-Iron-Phosphate) batteries. Such advancements align seamlessly with India’s growing focus on domestic manufacturing and EV production.
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Hyundai's Journey in India
Since its entry into India in 1996, Hyundai has grown to become the country’s second-largest car manufacturer. Its localisation push is not only in sync with India’s automotive policies but also a strategic step in strengthening its foothold in the EV market. With initiatives like production-linked incentives and government support for EVs, India is fast becoming a global player in the EV supply chain. Hyundai’s decision to localise EV battery assembly reaffirms its long-term vision of contributing to this transformation.
Driving India’s EV Revolution
Hyundai’s efforts signify more than just cost savings; they highlight a commitment to innovation and sustainability. By embracing local resources and fostering employment, the company is setting a benchmark for other automakers. The Creta Electric’s locally assembled battery packs are a testament to Hyundai’s proactive approach to sustainable mobility.
In a rapidly evolving automotive landscape, Hyundai Motor India’s achievements reflect a synergy between government initiatives and private enterprise. As India accelerates its journey towards becoming a global EV hub, Hyundai's leadership in localisation and sustainable practices is a true game-changer.
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