Hyundai India To Launch Electric Creta By March 2025

Hyundai Motor India Ltd plans to launch four electric vehicle models, including the Creta EV, by the last quarter of the current fiscal. This information comes from the company's preliminary papers filed with the markets regulator Securities & Exchange Board of India for initial public offering.

HMIL aims to maximise the price competitiveness of its electric vehicles by securing local production capabilities for key parts such as cells, battery packs, power electronics, and drivetrains, and by building a localised EV supply chain.

In its draft red herring prospectus, HMIL outlines its strategy to align EV model launches with market demands in India, covering different price segments.

"We are following a transition strategy, having started with the launch of high-end premium EVs and plan to transition towards the mass markets as the EV market and ecosystem scales up in India. In line with this, we aim to launch four EV models in future, including the Creta EV in the last quarter of fiscal 2025," the company stated.

Currently, HMIL sells two EV models in India—the IONIQ5 and Kona Electric—priced at approximately Rs 45 lakh and Rs 24 lakh, respectively.

To enhance price competitiveness, HMIL plans to secure local production capabilities for key parts and build a localised EV supply chain. The company has leased part of its Chennai Manufacturing Plant to Mobis, a Hyundai Motor Company group firm, for EV battery assembly. This move aims to reduce import costs for battery packs.

HMIL intends to localise the EV supply chain through collaborations with local and global EV power electronics vendors. In 2024, Hyundai Motor Company announced a strategic collaboration with Exide Energy Solutions Ltd to facilitate localised battery production and supply in India.

HMIL is exploring various strategic collaborations for battery production. The company believes that domestically sourced EV models will diversify its passenger vehicle offerings and expand market coverage.

In the near term, HMIL aims to increase localisation to secure production-linked incentive subsidies and transition to a dedicated EV platform to optimise costs.

Beyond EV manufacturing, HMIL plans to develop EV infrastructure in India by constructing charging stations. As of March 31, the company has established 11 fast-charging stations in India and intends to install more charging points across cities and highways.

The DRHP identifies policy changes as a significant challenge for the automotive industry. "Frequent changes in policies make it difficult for auto industry stakeholders to ensure adherence and commit investments. Overall policy stability and transparency are required for a smooth technology transition and localisation in the country," HMIL stated.

The company also highlighted concerns about meeting eligibility criteria and availing benefits under localisation norms. The government encourages localisation across sectors, especially in the automotive sector, through policies like PLI for automotive technology and advanced cell chemistry, the phased manufacturing program, Atmanirbhar Bharat, and Make in India.

"While the goal of localisation is to reduce import dependence and lower manufacturing costs, it involves significant initial capital investments from stakeholders within the automotive industry," HMIL noted in its preliminary papers.

The company suggested that simplifying and better tracking of policies would ensure effective localisation in India. Progress by vendors tied to individual original equipment manufacturers could also alter the industry's risk profile from a supply-side perspective.

Last week, HMIL filed preliminary papers with SEBI to launch an initial public offering (IPO). If approved, this IPO could become the largest in India, surpassing LIC's share sale of Rs 21,000 crore. HMIL proposes to sell 14,21,94,700 equity shares of Rs 10 each, constituting 17.5% of the post-offer paid-up share capital of the company.

(With inputs from PTI.)