The company is working with more than 194 vendors to localise over 1,238 parts at its Chennai manufacturing facility. Hyundai Motor India Limited (HMIL) announced its manufacturing strategy at the Bharat Mobility Expo in New Delhi, focusing on localising over 1,200 parts and battery packs. This initiative aims to boost domestic production, optimize costs, and enhance EV battery availability in India. The Hyundai Creta electric is the first model to benefit from this strategy.
HMIL, in collaboration with Mobis India, has started assembling battery packs at a new facility within its Sriperumbudur plant. This localisation effort has resulted in significant foreign exchange savings of USD 672 million (INR 5,678 crore plus) since 2019 and created over 1,400 jobs.
Hyundai's strategy
The company is working with more than 194 vendors to localise over 1,238 parts at its Chennai manufacturing facility. HMIL has already achieved up to 92% localisation in its manufacturing.
“Commissioning of the HMIL and Mobis India's battery-pack assembly plant is a key milestone in our localization and EV roadmap,” said Gopalakrishnan Chathapuram Sivaramakrishnan, whole-time director and chief manufacturing officer of HMIL. The newly established battery-pack assembly plant has an initial annual capacity of 75,000 units.
The plant is capable of assembling various battery types, including NMC (Lithium-Nickel-Manganese-Cobalt Oxide) and LFP (Lithium-Iron-Phosphate) batteries. The locally assembled battery packs will initially be used in the Hyundai Creta electric.
This localisation strategy will allow HMIL to optimize battery costs and improve the availability of batteries for its electric vehicles produced in India. The localization efforts are part of HMIL's broader strategy for electric vehicle production in India. The battery pack assembly is located within HMIL's Sriperumbudur manufacturing facility.
