The Hyundai EVs are coming. They will focus on volume and affordability - and will not simply play the role of flagship or technology showcase. Hyundai Motor India has sounded the bugle on its electric vehicle strategy for India, and it is looking fairly comprehensive. The company will bring in six EV models to India by 2028 - and they will be either SUVs, CUVs or sedans. The idea is to have a staggered launch approach, but all these cars will be built or assembled locally. All these cars will be made specifically for the Indian market, and so could be derivatives of global products. The total investment towards the R&D and rollout of these cars will be around Rs. 4000 crore.
S S Kim, MD & CEO, Hyundai Motor India said, "As we continue to redefine the mobility space, today we are yet again showcasing our commitment towards Indian customers with the announcement of expanding our BEV (battery EV) line-up. By driving the adoption of electric mobility at scale in India, Hyundai will become the fulcrum for transformation of a brighter and better tomorrow." The company does not rule out exports of said cars, though the initial focus will remain on India.
Also Read: Hyundai IONIQ 5 Exclusive Review
Expect 3 EVs to be based on Hyundai's E-GMP platform
These six models will adopt one of two manufacturing strategies. The first will use a localised version of the E-GMP (electric global modular platform) - a skateboard design modular format that the Hyundai Motor Group (HMG) has unveiled last year globally. The first car from this family is the IONIQ 5 - a car we exclusively reviewed on carandbike - that has already gone on to win the 2022 German Car of the Year (GCOTY) award. The E-GMP is a flexible dedicated-EV platform that will allow the HMG brands to offer differing body styles and sizes of cars, with varied driving range (due to battery size modularity) for a wide portfolio of EVs in the future.
Existing vehicle platforms are being modified for an EV application
The second strategy will see the use of existing ICE (internal combustion engine) vehicle platforms being modified for an EV application (as in the case of cars like the Hyundai Kona Electric or Kia Soul EV). Hyundai says it will see a rough 50 per cent split between the two strategies, meaning you can expect three cars on the E-GMP while the balance 3 will use existing platforms - and the latter could see the use of more than one. The reason for this second route is to try and keep costs in check, since many ICE platforms are already heavily localised in India. This means everything from the Grand i10/Venue to the Creta/Verna or even the Elantra/Tucson are up for grabs. The cars that will come will aim to be affordable and offer a minimum of 350 kms driving range. The E-GMP already claims a maximum of 800 kms range depending on size and segment if the vehicles it spawns.
Hyundai India is looking to cater multiple segments with its EV strategy - SUVs, CUVs and sedans
Hyundai promises affordability, says these models will address the mass and mass-premium segments in India - meaning volumes will remain in focus. The EV plan also takes into account its overall sales targets for the next few years. And so for now the cars will roll out from the company's existing Chennai plant - where it says it has enough capacity until 2023-24. Additional capacity requirements (of ICE + EV) will be addressed only after two years. At present, the plan also does not consider any potential synergies with sister brand Kia India (and its own potential EV plans for this market), nor an expected introduction of the Genesis - the group's luxury car brand, to India. But while it will not shy away from exercising said synergies if they were to materialise - in an effort to achieve greater economies of scale. Given the current level of government incentivisation for the adoption of EVs, Hyundai does not foresee its mass EV model going below the fabled Rs. 10 lakh price threshold. Tarun Garg, Director, Marketing, Sales, and Service at Hyundai told carandbike, "Let us take some benchmarks today, let's say Creta. The average price of the Creta is Rs. 15 lakh, so to assume we can come lower than that probably is very difficult, as of now. Indian customers do not really want to compromise as far as space, features are concerned and even range. The price also depends on the range, the range goes up, the cost soars. So if we are talking about a range of 350 km then I don't think it is really right to talk about a sub-10 lakh electric vehicle."
It is likely that cars like the Creta could be offered in an all electric iteration
Unlike many markets, India also does not have strong incentives - to be able to bring prices of EV models close to their like petrol or diesel counterparts. Garg added, "That also requires some incentives coming in from the government. In India, that would have been an ideal situation, but we feel, that we still have to make EVs affordable. The material costs are still high, so there are a lot of ifs and buts about it."
Hyundai will continue to work on partnerships in the charging infrastructure space to ensure smoother adoption of EVs
Hyundai says it will continue to work with existing and new partners to achieve greater cost actualisation for the components needed to build these cars, and also seek ways to increase localisation even on aggregates like the battery itself. Besides this it will continue to work on partnerships in the charging infrastructure space to ensure smoother adoption of EVs amongst its buying audience. The Hyundai Motor Group plans to launch 23 EV models and sell 1 million EV units worldwide by 2025. The India plan from the Hyundai brand will contribute towards this larger mission.
