Hyundai Motor Company and Kia Corporation have announced a significant step towards enhancing their electric vehicle (EV) offerings in India by signing a Memorandum of Understanding (MOU) with Exide Energy Solutions. This strategic collaboration is set to localize the production of EV batteries, with a particular focus on lithium-iron-phosphate (LFP) cells, catering to the burgeoning demand in the Indian market.
The partnership marks a pivotal move for Hyundai and Kia, positioning them as leaders in adopting domestically produced batteries for their upcoming EV models in India. This initiative underscores the companies' commitment to fostering exclusive battery development, production, supply, and partnerships within the Indian landscape.
The MOU signing ceremony took place at Hyundai Motor Group's Namyang Research and Development Center in South Korea. The event saw participation from key figures across the partnering organizations, including Heui Won Yang, President and Head of R&D at Hyundai Motor and Kia, and Dr. Mandar V Deo, Managing Director and CEO of Exide Energy.
Highlighting the strategic importance of this collaboration, Yang emphasized India's critical role in global vehicle electrification efforts, especially in light of the country's carbon neutrality objectives. He pointed out that securing cost competitiveness through local battery production is paramount, expressing confidence that the partnership with Exide Energy Solutions Ltd. would significantly contribute to equipping future Hyundai and Kia EV models in India with locally sourced batteries.
Kia recently shared its strategic vision for the Indian market at Investor Day 2024, introducing plans to launch two dedicated models, including the Kia Carens EV, to cater to the diverse needs of Indian consumers. The company's strategy revolves around enhancing product competitiveness, stimulating new demand through Purpose-Built Vehicles (PBVs), and differentiating its brand through superior customer experiences and diversified manufacturing bases in emerging markets.
Looking forward, Kia has outlined an ambitious roadmap featuring 15 EV models by 2027, while Hyundai aims to roll out five EVs by 2032, highlighting the companies' optimistic outlook for the Indian market. Hyundai anticipates that by 2030, India will witness the sale of 50 lakh passenger cars, with SUVs constituting 48 percent and EVs 30 percent of the market share.
