Hyundai to introduce high-volume EV models beginning 2025: COO Tarun Garg

South Korean automobile manufacturer Hyundai Motors India is gearing up to launch high-volume electric vehicles starting from 2025, a top company official said on Tuesday.

The company plans to achieve this feat through battery pack localisation, says Tarun Garg, chief operating officer, Hyundai Motors India.

In 2023, the manufacturer of IONIQ 5 invested ₹700 crore in the battery pack manufacturing plant in Chennai which is touted to have a production capacity of 75,000 battery packs annually. All the models will be manufactured at the company’s Chennai plant, says Garg. The manufacturer of Creta and Venue is also aiming to have 20% EV penetration by 2030.

Unlike its peers, however, the company is not keen to launch hybrid technology in the Indian market. "We have hybrid technology and hybrid vehicles are doing very well in the US and Europe, as far as Hyundai is concerned. But in India, as far as tax structure is concerned, including the government’s narrative, it is very clear towards EVs. We feel that EV is the ultimate destination," says Garg.

In 2023, the country's second-largest automobile manufacturer recorded a 9% increase in its total sales to 6,02,111 units as against 5,52,511 units in the same period last year. Of this, the petrol powertrain accounted for 82% of its overall sales and diesel accounted for 18% of its total sales. The company’s CNG portfolio, which includes the recently launched Exter, Aura and Grand i10 Nios sold more than 6,000 units in 2023. Moreover, the company’s SUV segment grew from 53% in 2022 to 60% in 2023, aided by increased rural demand. The company currently commands a 31% market share in the mid-SUV segment.

Meanwhile, Hyundai Motors on Tuesday also launched the new version of its highly popular SUV model Creta at a starting price of ₹10.99 lakh. The new Creta comes with five powertrain options including two new— 1.5 l MPi Petrol (6MT/ IVT) and 1.5 l U2 CRDi Diesel (6MT/ 6AT).

With the launch of the new Creta, the company is aiming to increase its SUV portfolio to 65% this year/

Notably, in order to expand its capacity in the country, the South Korean automobile manufacturer announced plans to invest ₹7,000 crore in its Talegaon plant in Maharashtra. The company aims to commence production of its Talegaon facility by next year. The company also announced an investment of ₹1,680 crore in Tamil Nadu including establishing a hydrogen resource centre in the state. This is in addition to the ₹20,000 crore investment that the company plans to deploy over a period of ten years.