In a strategic move to position itself at the forefront of the future mobility business in India, Hyundai Motor, South Korea’s leading automaker, is gearing up to invest an additional $744 million.
The focus of this substantial investment is to establish a robust hydrogen ecosystem, a pivotal step in reshaping the landscape of the world’s third-largest car market.
Hyundai Motor India Ltd., the wholly-owned subsidiary of the South Korean giant, formalized its commitment through a memorandum of understanding, signaling its intent to inject 61.8 billion rupees ($743.8 million) into various initiatives. This includes the development of a dedicated hydrogen resource center and other related projects situated in the state of Tamil Nadu.
Kim Unsoo, MD & CEO of Hyundai Motor India, emphasized that this collaboration transcends a mere financial investment. It represents a catalyst for cultivating a robust hydrogen technology ecosystem, aligning with Hyundai’s commitment to sustainability and a green future.
Hyundai’s ambitious plan extends beyond local market impact; the automaker envisions developing India into a global hydrogen hub. The strategic collaboration includes a partnership with the Indian Institute of Technology-Madras in Chennai, often referred to as the Detroit of Asia, to foster innovation and technological advancements in the hydrogen domain.
As part of its comprehensive approach, Hyundai is exploring the potential launch of its hydrogen fuel cell car model, Nexo, in India. This aligns with the automaker’s broader strategy to enhance the availability of eco-friendly energy sources in one of the world’s most populous countries.
In addition to its hydrogen endeavors, Hyundai, along with its affiliate Kia Corp., has plans to introduce new models. Notably, an electric version of the popular Creta SUV is set to hit the market next year. Hyundai aims to sell 20,000-25,000 units of the Creta EV annually, further solidifying its footprint in India’s rapidly evolving electric vehicle (EV) landscape.
With a staggering 4.73 million car sales in the domestic market last year, India stands as the world’s third-largest auto market, following China and the US. While eco-friendly cars constituted only 2% of the Indian automobile market in 2022, there is a swift paradigm shift expected. Industry sources anticipate a rapid increase in the market share of electric vehicles as India accelerates its determination towards electrification.
