Hyundai India achieves 92% local manufacturing, opens battery plant in Chennai.

Hyundai Motor India Limited (HMIL) has reached 92% localization in its manufacturing operations and started assembling electric vehicle battery packs at its Chennai facility. The company announced these developments at the Bharat Mobility Global Expo 2025, where it showcased its indigenisation initiatives.

The newly commissioned battery assembly plant, operated jointly with Mobis India Limited, has an annual capacity of 75,000 units in its first phase. The facility will produce both NMC and LFP type battery packs, with the upcoming Hyundai CRETA Electric set to be the first model to use these locally assembled units.

HMIL’s Chief Manufacturing Officer, Gopalakrishnan C Sivaramakrishnan, said the battery plant marks a significant step in the company’s EV strategy. The localisation efforts have generated foreign exchange savings of US $672 million since 2019 and created over 1,400 direct jobs.

The manufacturer currently works with 194 vendors to source more than 1,238 components at its Chennai facility. The company has achieved complete localisation for several components including alternators, alloy wheels, disc brakes, and catalytic converters.

HMIL has also localised the production of advanced components such as panoramic sunroofs, tire pressure monitoring systems, and NOx sensors for the first time in India. The company plans to extend this localisation strategy to its upcoming plant in Talegaon, Maharashtra.

Hyundai, which entered India in 1996, has grown to become the country’s second-largest car manufacturer. The company’s push for localisation aligns with India’s automotive sector policies that encourage domestic manufacturing and reduced import dependence.

The Indian auto component industry has seen significant growth in recent years, with increased focus on local manufacturing and export capabilities. Government initiatives promoting electric vehicles and domestic production have led several manufacturers to expand their local operations.

The establishment of EV battery assembly operations comes as India aims to increase its role in the global electric vehicle supply chain. The country has introduced production-linked incentive schemes to boost domestic manufacturing of EVs and their components.

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