Hyundai Motor Group (HMG) plans to expand production capacity in India and build a major global export hub for Hyundai and Kia brand vehicles, group’s executive chairman Euisun Chung said during his recent visit to the country.
The automaker aimed to have capacity for 1.5m vehicles across the two brands by 2025 which would help it strengthen local sales and increase exports.
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Capacity would be expanded further in the second half of the decade with the group expected to invest US$3bn by 2030.
HMG also aimed to develop Kia into a major automotive brand in India, which recently overtook Japan as the world’s third largest vehicle market after China and the US. The company said it was targeting 890,000 vehicle sales in India this year, up 4from 857,000 last year.
HMG also said it aimed to lead the country’s transition to battery electric vehicles (BEVs) by ramping up local production, bringing in new products and establishing BEV ‘ecosystems’ including charging networks.
Chung said in a statement: “India is among the fastest growing economies and, as this growth continues, the strategic importance of Hyundai Motor India will only increase.
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By GlobalData“By leveraging our strong reputation and competitive quality in India, we aim to expand exports to neighbouring countries, making India a global export hub to boost our regional market competitiveness.
“By around 2030, we expect to see a substantial expansion in the EV market. In anticipation of this evolution, Hyundai is focused on developing locally tailored EVs aimed at establishing us as a leading global EV brand.
“We also plan to proactively build charging stations at strategic locations, including dealerships, to facilitate the adoption of EVs”.
HMG recently signed an agreement with Indian battery manufacturer Exide Energy Solutions to source BEV batteries locally.
Hyundai Motor India was scheduled to launch its first in the second half of 2023 and aimed to have five locally tailored BEVs on sale by 2030.
