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| Hyundai Motor |
Hyundai’s India Expansion and Hybrid EV Strategy
Hyundai Motor plans to invest nearly $5.1 billion in India by 2030, marking a strategic push into hybrid electric vehicles (EVs). CEO Jose Munoz announced the launch of eight hybrid SUV models and five battery electric vehicles by 2030. The company aims to increase hybrid offerings across all segments, from affordable compacts to premium SUVs. Hyundai sees hybrids as key profit drivers, as battery EVs currently yield lower or negative margins for many competitors.
Capacity Growth and Infrastructure Development
Hyundai will expand its Pune multi-model facility to add about 250,000 units per year by 2028, making it one of the company’s largest expansions after the Metaplant America facility. By 2032, the automaker plans to install over 600 fast-charging stations across dealerships, highways, and strategic locations in India, supplementing its existing 125 DC fast chargers and nearly 950 AC chargers. These efforts support a projected domestic automotive sales growth to 5.6 million units by 2030, with Hyundai targeting a 15% market share.
Battery Production and Technological Innovation
Starting this year, Hyundai will establish a flexible battery plant assembling lithium-iron-phosphate (LFP) prismatic batteries locally. This move aligns with South Korean battery makers’ increasing focus on LFP chemistry due to its cost and safety benefits. Additionally, Hyundai plans to implement its virtual autonomous manufacturing system, HMGX 3.0, in its Indian operations by 2030, enhancing production efficiency and automation. The company also aims to export about 30% of its Indian production globally.
ScrapInsight Commentary
Hyundai’s substantial investment underscores India’s growing importance in the global EV supply chain. The focus on hybrid vehicles reflects current profitability challenges with full battery EVs, while local LFP battery production signals a strategic shift toward cost-efficient energy storage. This move will likely accelerate India’s role in sustainable automotive manufacturing and reshape regional supply chains.
