Hyundai-Kia group plans to make e-cars in India

Korean group companies Hyundai and Kia Motors are finalising local manufacturing plans for electric cars in India, e-charging their operations at a time when the government is preparing an ambitious strategy to push locally sourced cleanfuel mobility. For powering the vehicles — that may range from a mini SUV to even clean versions of Hyundai’s existing compact cars, the Korean auto giants are looking at the possibility of partnering compatriot LG for batteries, while also studying which of their international suppliers can be brought here.

Top officials with the auto giants are currently in the middle of a feasibility study, taking stock of regulatory issues, import tariffs on parts, possible partners for local sourcing, and understanding India-specific conditions for electric vehicles, Albert Biermann, president and head of the group’s R&D division, told TOI last week. “One reason why I am in India is to better understand what’s going on in the electric space here.”

The push by Hyundai-Kia comes at a time when the Maruti Suzuki-Toyota combine is close to launching locally made electric products (from next year), and Mahindra & Mahindra and Tata Motors are expanding their e-fleet.


Asked whether Hyundai group will look at localising the production of batteries and motors, Biermann said, “We can import the technology, but when the market gets too competitive, we can also localise. We have a very strong network of our sister companies and Korean suppliers. The Korean battery technology is leading across the world and we have strong partnerships, like with LG. So, we can localise with those partners.”

Hyundai will initially test the waters with the launch of the Kona electric SUV that will be assembled at its Chennai plant. The car, however, will be priced in the premium range and cost upwards of Rs 20 lakh. Biermann said that the Hyundai group feels dejected by the government’s decision to provide electric vehicle incentives only for taxis and fleet cars. “It would be a lot easier if private car customers also get some support to get into cleaner vehicles, especially in metropolitan cities.”