Hyundai Motor Company plans to invest more than US$440m in India over the next four years, an increase on previously announced plans.

The announcement comes after the completion of 25 years in India. The country has been a key market for Hyundai with regards to domestic demand as well as exports. The company was the second-largest passenger vehicle player in India, with a market share of 17.4% in 2020;

Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, says the committed investments in India will be focused on expanding product portfolio over the next four years and launch a series of new vehicles including a battery electric vehicle (BEV).

"Hyundai has been striving hard to emerge as the next-gen mobility player with a focus on connected and electric vehicles, both globally and in India," he points out. "India has been identified as an emerging market with great growth potential."

Presently, Hyundai has Kona Electric under its BEV portfolio in India. However, it is a premium model. Hyundai plans to go the Tata-way and develop locally made affordable electric car. The company has a budgeted investment of US$137m for the car which is expected to start production by 2023.

Bakar also notes that Hyundai has pioneered shared mobility in India in partnership with car sharing companies, launched the first online retail program 'Click to Buy' and emerged as a major SUV brand.

"Hyundai, with its affordable BEV, could definitely reform the electric mobility space in India but needs substantial support from the government to develop the electric ecosystem to promote EV adoption," Bakar says.