Hyundai recently launched the electric version of their popular SUV, Creta. They claimed the batteries which will find their place inside the Creta Electric will be locally produced. Hyundai has finally announced that, in a partnership with Mobis India Limited, will manufacture batteries in a newly acquired facility at the brand’s Chennai Plant.
Localisation Process
The manufacturing plant is capable of producing a range of batteries like NMC (Nickel-Cobalt Oxide) and LFP (Lithium-ion phosphate) batteries. The plant also can produce 75000 units every year! (In Phase 1). According to Hyundai, the localisation rate is 92% when it comes to manufacturing. This includes important components like Disc Brakes, Alloy Wheels, Catalytic Converters, Alternators, Clutch Assemblies, Reverse Parking Sensors, Shark Fin Antennae, TPMS, Oil Cooler and NOX sensors. This was possible by sourcing 1238 parts from 194 vendors!
Adaptation Strategy
This manufacturing plant is part of a strategy that aims to develop an interchangeable production market, aiding adaptation to the market quickly. Hyundai’s lofty goal is to achieve a market share similar to their ICE products. The ICE products currently hold a 14-15% share and the current EV market share is cumulatively 2.5%. This is expected to rise to 17% by 2030 and the Creta EV is expected to play a huge role in transforming the landscape.
Future Ambitions
Hyundai also has the ambition to localise drivetrain and electronics which can help the manufacturer to deliver a higher value for money prospect in their models as compared to today. Hyundai is also working closely with the Indian government to leverage schemes like the Production-Linked Incentive (PLI) program, which incentivises local manufacturing. Additionally, Hyundai is exploring methods to recycle and repurpose EV batteries, ensuring end-to-end sustainability. This localisation effort is sure to revolutionise the car market concerning EVs and give consumers a better product in the grand scheme of things!
