Hyundai wants local parts in EV cars in India

While the Indian government is pushing for electric mobility, carmakers are also finalizing their blueprints to roll out electric vehicles. South Korean auto major Hyundai, which operates in India through its wholly owned subsidiary Hyundai Motor India Ltd (HMIL), is looking at various options for locally sourcing electric vehicle components.

Hyundai plans to drive its first electric vehicle (EV) into India this year in a complete-knockdown form; it will be assembled at its plant in Chennai, in the southeastern state of Tamil Nadu.

However, as a long-term measure, Hyundai is looking at various options, including local manufacturing of battery parts, the Press Trust of India reports.

The Indian government is pushing for local sourcing of EV components and Suzuki Motor Corp, along with its partners, is building an automotive lithium-ion battery manufacturing plant in the western state of Gujarat.

Tata Motors and Mahindra are also actively pursuing the EV segment in the country.

India is currently pursuing a scheme known as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles 2 (FAME-II) with an outlay of 100 billion rupees (US$1.43 billion) to focus on electrification of public transport.

The central government will offer incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes. It will also focus on setting up of charging stations with the active participation of state-owned and private players.

Plug-in hybrid vehicles and those with a sizable lithium-ion battery and electric motor will also be included in the FAME-II scheme. Fiscal support will depend on the size of the battery, officials say.