Hyundai invests $ 530 million to bring electric vehicles to India Business and Economic News

India’s second-largest carmaker will launch six cheap and premium electric models, including SUVs and sedans.

South Korean Hyundai Motor Co. plans to invest Rs 40 billion ($ 530 million) to launch six electric vehicles in India by 2028 to encourage clean driving in a country inhabited by some of the world’s most polluted cities.

Hyundai, India’s second-largest carmaker, will market cheap and premium electric models, including used sports vehicles (SUVs) and sedans, starting with its first electric vehicle (EV) in 2022, said Tarun Garg, Hyundai Motor India’s director of sales and marketing. on wednesday.

“We want to be a key contributor to the EV story in India,” Garg told Reuters.

The investment will focus on research and development to launch the six vehicles, Hyundai’s Indian arm said in a statement.

Stricter government emissions regulations are driving automakers to invest in electric vehicles worldwide, with sales expected to rise to a quarter of total vehicle sales by 2030, up from around 2 percent today.

In India, electric vehicles account for less than 1 percent of total car sales, but the government aims to achieve a 30% share by 2030.

Electric boost

Hyundai’s plans also include Tesla Inc., the world’s largest electric car maker preparing to launch his cars in India and has lobbied the government to lower import duties on electric vehicles.

Hyundai has teamed up with rivals Tata Motors and Mahindra & Mahindra is pushing for the removal of electric vehicles at a time when India’s carmaker is pushing for electricity as it seeks to reduce pollution and fuel imports. Maruti Suzuki, the country’s leading carmaker, however, is betting on alternative fuels and hybrid technologies, and EV hopes to launch them only in 2025.

Hyundai’s electric vehicles will be built on its dedicated global modular electric platform (E-GMP) that it plans to bring to India, or on a modified platform that currently builds gasoline cars, Garg said.

Cars built on its dedicated electric platform will have a range of 800 kilometers (497 miles) and others will be able to travel between 350 and 400 kilometers (217 and 249 miles) on a single charge, he said.

The company launched its Kona EV in India in 2019, but sales were sluggish due to the high price and negligible charging infrastructure at the time.

Garg said Kona taught the company the need to make its electric vehicles affordable, and also offered different charging solutions.

Hyundai is in talks with suppliers to supply and manufacture components for its electric vehicles locally, which will help make cars cheaper. In addition to providing home chargers, Hyundai also wants to create strategic links to provide public charging facilities, Garg said.

“Kona was talking about testing the waters of India. Her studies have given us the confidence to make this push,” he said.