The South Korean automaker, which has earmarked an investment of KRW 120.5 trillion globally, plans to add 1 million units to its global capacity, with India accounting for 250,000 additional units. The company is targeting 5.55 million annual global sales by 2030, up 30% from 2023, and looks to double its hybrid offering to 14 models and a portfolio of 21 electric vehicles.
28 Aug 2024 | 5048 Views | By Kiran Murali
South Korean automobile giant Hyundai Motor Company has set an ambitious target to boost its vehicle production capacity globally by 1 million units by the end of the decade. A quarter of this planned capacity addition will come from India, which is the company’s third largest market for the group ...
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South Korean automobile giant Hyundai Motor Company has set an ambitious target to boost its vehicle production capacity globally by 1 million units by the end of the decade. A quarter of this planned capacity addition will come from India, which is the company’s third largest market for the group after South Korea and the US.
Hyundai Motor India, which has recently filed for an initial public offering, currently can manufacture 824,000 units annually across its two integrated manufacturing plants in Sriperumbudur, Chennai.
The automaker recently acquired another plant in Talegaon (Maharashtra), from US carmaker General Motors, which exited India a couple of years back, for Rs 787.2 crore. The company expects to start production at the plant in the second half of next financial year.
Once the Talegaon plant is partially operational, Hyundai’s total production in India will increase to 9,94,000 units per year. The capacity will be expanded to 10,74,000 units once the plant is fully operational.
Hyundai India plans to develop its Chennai plant as a hub for electric and sport utility vehicle production. It currently has a portfolio of 13 cars across sedans, hatchbacks, SUVs and EVs.
The automaker has introduced two electric cars in India - Kona and Ioniq 5 - in India and is yet to launch a mass electric car. The company is expected to launch an electric variant of its Creta mid-size SUV in early 2025.
Apart from India, Hyundai is expanding its capacity in Korea with a dedicated electric vehicle plant that will have a capacity of over 200,000 units. In addition, the automaker is also setting up CKD facilities in countries like Vietnam, Saudi Arabia and Algeria with a capacity of over 250,000 units, and an HMGMA facility in the US with a capacity of 300,000 units.
Hyundai has earmarked an investment of KRW 120.5 trillion till 2033 globally. Around 45% of it will go for research and development, while 43% will be as capital expenditure. The company is believed to be planning to invest Rs 32,000 crore, or (KRW 5.08 billion) in India.
Meanwhile, the automaker is targeting sales of 5.55 million units annually by 2030, which represents a 30% growth from the 2023 volume. Of this, EVs are anticipated to account for 30% of the sales as the company is looking to sell 2 million EVs annually by the end of the decade.
“In response to the recent slowdown in EV demand, Hyundai Motor is developing a new EREV under its Hyundai Dynamic Capabilities strategy. The new EREV will combine the advantages of internal combustion engines (ICE) and EVs. Hyundai Motor has developed a unique new powertrain and power electronics (PT/PE) system to enable four-wheel drive with the application of two motors. The operation is powered solely by electricity, similar to EVs, with the engine being used only for battery charging.
Its EV portfolio line will be expanded to 21 models, ranging from affordable to luxury and high-performance models. The company also plans to double its offerings in the hybrid segment to 14 models, including the luxury brand Genesis.
Hyundai’s management noted that they will hybrid sales expansion to meet the demand in each region, including Korea and Europe. “The expanded regional hybrid deployment plan will secure market portfolio flexibility,” the company said.
Autocar Professional had earlier reported that Hyundai is also considering entering the hybrid market here amid growing consumer acceptance of hybrid-powered cars.
“The company aims to address the EV deceleration by expanding its hybrid and new EREV (Extended Range Electric Vehicle) offerings and gradually increasing EV models by 2030 when a recovery in EV demand is expected,” Hyundai said.
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