Hyundai Motors to build EV factory in India next year
Kim Yang Hyuk | mj@ | 2017-09-11 11:06:20

[Digital Times, Kim Yang-hyuk] Hyundai Motors is expected to build an electric vehicle production plant next year as soon as possible in India. The US and China markets have worsened due to THAAD retaliation and protectionism, which is expected to accelerate the Indian market`s growth potential.

According to the industry on September 10, Hyundai Motors plans to build a semi-finished electric car (CKD) assembly plant in the second half of 2018 in order to utilize India as an EV test market. CKD is a method of exporting parts and assembling them at the destination and selling them as finished products.

A Hyundai Motor expert said, "We expect the time to establish an electric car plant in India in the second half of 2018 or the first half of 2019. India is a very large market, so we are preparing for a competitive advantage in the future green car market. "

The Indian electric car market is still small, but is expected to grow rapidly thanks to the Indian government`s strong commitment to supply. India, which is suffering from the world`s worst air pollution with China, has decided to convert all vehicles sold in the market into electric cars by 2030. Besides, it is spurring the expansion of infrastructure such as the establishment of 1000 electric car charging stations in Delhi.

As a result, local and overseas brands are increasing their investments. India`s Tata is preparing to launch an electric car in Thiago, and Mahindra & Mahindra has recently revealed plans to invest about USD 94 million in electric cars. Toyota and Suzuki are reportedly planning to establish a local lithium-ion plant to produce eco-friendly cars such as electric cars and hybrid cars. Also, the fact that carmakers are pouring in to the Indian market is due to the unlimited growth potential. Global market research institutes and the industry expect India`s domestic sales to reach 4.83 million units in 2020, making it the world`s third largest market after China and the United States. Currently, it tops Korea with 5th place in the world, with 4.7 million units last year and 33.7 million units sold.

Hyundai is the second largest market in terms of market launch and product quality in the Indian market. Hyundai, which sold a total of 476,611 cars last year, has exceeded its previous highs. It is also possible to exceed 500,000 units in the second half. The Indian market is expected to become the core cash cow market of Hyundai, given the upturn in the growth trend and the upcoming eco-friendly car market.

The industry expects Hyundai to find new markets to replace China to overcome sluggish sales. Sales volume is declining due to THAAD retaliation and competitive decline. The prospect that Hyundai is not likely to recover its existing position in China for the time being is predominant.

"The completion of the THAAD deployment will further heighten the revenge of China," he said. "In terms of Hyundai, we are doing our utmost to make up for the Chinese market. Meanwhile, company is seeking opportunities to make up for losses and find new opportunities. "He said.

By Kim Yang Hyuk mj@


[ copyright ¨Ï The Digitaltimes ]