Hyundai Motor India Limited (HMIL) has achieved a significant milestone by localizing 92% of its manufacturing operations. The company also announced the commissioning of an electric vehicle (EV) battery assembly plant at its Chennai facility. These advancements were revealed during the Bharat Mobility Global Expo 2025, highlighting Hyundai’s commitment to indigenization and sustainability.
EV Battery Plant and Local Manufacturing Highlights
The newly established battery assembly plant, a joint initiative with Mobis India Limited, has an initial annual production capacity of 75,000 units. The facility will produce both NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) battery packs, aligning with global EV standards. The first vehicle to feature these locally assembled battery packs will be the Hyundai CRETA Electric, a key model in Hyundai’s EV lineup.
Gopalakrishnan C Sivaramakrishnan, HMIL’s Chief Manufacturing Officer, emphasized the strategic importance of the battery plant in the company’s EV roadmap. He noted that Hyundai’s localization efforts have saved approximately $672 million in foreign exchange since 2019 and generated over 1,400 direct jobs.
Expanding Localization Efforts
Hyundai currently collaborates with 194 vendors to source over 1,238 components at its Chennai facility. The company has achieved complete localization for key automotive components, including alternators, alloy wheels, disc brakes, and catalytic converters. Advanced components such as panoramic sunroofs, tire pressure monitoring systems, and NOx sensors have also been localized for the first time in India.
Looking ahead, Hyundai plans to extend its localization strategy to its upcoming manufacturing plant in Talegaon, Maharashtra, further solidifying its position in the Indian automotive market.
Hyundai’s Role in India’s Automotive Growth
Since entering the Indian market in 1996, Hyundai has grown to become the country’s second-largest car manufacturer. The company’s focus on localization aligns with India’s broader automotive sector policies, which encourage domestic manufacturing to reduce import dependence and boost economic growth.
Hyundai’s establishment of EV battery assembly operations reflects India’s ambitions to strengthen its position in the global electric vehicle supply chain. Government initiatives, including production-linked incentive (PLI) schemes, have encouraged automakers to expand local operations and invest in advanced manufacturing technologies.
Also read: UP Boosts Investment Push in Food Processing and Tech
The Indian auto component industry has seen significant growth, with increased emphasis on local production and exports. Hyundai’s initiatives, particularly in EV battery production, underscore its commitment to innovation and sustainable mobility solutions.
Hyundai’s 92% localization and investment in EV battery assembly are key milestones for the company and India’s automotive sector. By focusing on local resources and fostering innovation, Hyundai aims to drive India’s transition to sustainable and self-reliant automotive manufacturing.
