South Korean auto major Hyundai will invest about Rs 1,400 crore ($200 million) over the next three years to develop affordable electric vehicles for the Indian market.
The company would use the resources to develop a dedicated electric vehicle architecture for local customers, said Hyundai Motor India managing director SS Kim. The vehicles could at a later stage be exported to emerging markets from India.
Hyundai Motor India, along with engineers from the Namyang R&D Centre (South Korea), has already begun studies to assess the requirements of private buyers to determine the optimum range and price points for such products.
Kim was speaking on the sidelines of the launch of the carmaker’s long-range SUV Kona Electric priced at Rs 25.3 lakh (ex-showroom, India). He also said that personnel in the company’s procurement division are in the process of assessing the business and technological capabilities of prospective partners.
Hyundai itself is evaluating the prospect of setting up a lithium ion battery manufacturing unit in the next two to three years. “If we introduce mass market electric vehicles in the next three years, we will probably need that kind of localised ecosystem,” Kim said.