Hyundai Considering Options For Electric Vehicle Components — And So Begins The Hunt

South Korea based auto giant Hyundai Motors is currently looking at, and considering options for sourcing electric vehicle components in India. A top official from the company said that components include battery parts.

Mr. S S Kim, Managing Director and Chief Executive Officer, Hyundai Motor India Ltd., said, "We are studying various options, not only us (HMIL) in India, but even Hyundai Motor Company (HMC) procurement division is looking at it. The company's parent, Hyundai Motor Company is even contacting suppliers in India for battery components."

According to Economic Times Auto, Hyundai plans to bring it's first electric vehicle as a Complete Knock-Down (CKD) unit that will be assembled at Hyundai's Chennai-based manufacturing plant.

Mr. Kim said that government support is important, and critical to support growth of the electric vehicle in the 'personal mobility' space. "In many countries where the electric vehicles are sold to private customers, they are supported by the government in terms of subsidies. If Original Equipment Manufacturers (OEMs) need to push electric vehicle mobility, government push is critical, so we are expecting some more support," he added.

In a statement about launching hybrid vehicles in the country, Mr. Kim said the company will take a decision after they have more clarity from the government about its stance on the policy. "Once the hybrid policy and its framework readied by the government we will also plan our activity accordingly," he stated.

Mr. Kim also said that the installed capacity at the company's Chennai based plant is enough to cater for current demand. The company recently increased the size of its Chennai plant in order to to increase production by an additional 50,000 units. This now takes Hyundai's production capability to 7.5 lakh units a year.

The government is focused towards ushering the electric era in the country, and have recently launched phase two of the FAME scheme. Recent developments in the FAME II scheme now require for manufactures to source at least 50 per cent of their requirements locally. This move helps the local economy grow along with the manufacturers.

Suzuki Motor Corp is already in the process of constructing an automotive lithium-ion battery manufacturing plant in Gujarat.

Thoughts About Hyundai Looking For Options For EV Parts

Hyundai we think is large enough to make its own investments in the segment, in India or any where else. May be they have a different plan involving a wide range of local manufacturers, may be not. I guess we will know when they know.