Hyundai and Kia on Monday signed a memorandum of understanding with India's Exide Energy on battery production for their electric vehicles (EVs) in India.
The South Korean auto duo said their partnership with Exide Energy aims to localise their EV battery production in India, specifically focusing on lithium-iron-phosphate cells.
Hyundai Motor said it plans to invest about 3.25-trillion won (R44.82bn) for 10 years starting in 2023, including for the launch of six EV models by 2028 and charging stations, betting big on the world's third-largest car market.
Kia plans to introduce locally optimised small EVs for the Indian market starting in 2025.
Analysts noted India's rich natural resources needed for EV supply chains, including lithium, as well as affordable labour costs are attracting carmakers to consider producing EVs in the country.
“India's average manufacturing labour cost is estimated to be about one-fourth of labour cost in China and the country's huge lithium mines would help carmakers that plan to make EVs in the country to better source battery materials,” said Shin Yoon-chul, an analyst at Kiwoom Securities.
Hyundai and Kia to partner with India's Exide Energy on EV batteries
Image: Supplied
Hyundai and Kia on Monday signed a memorandum of understanding with India's Exide Energy on battery production for their electric vehicles (EVs) in India.
The South Korean auto duo said their partnership with Exide Energy aims to localise their EV battery production in India, specifically focusing on lithium-iron-phosphate cells.
Hyundai Motor said it plans to invest about 3.25-trillion won (R44.82bn) for 10 years starting in 2023, including for the launch of six EV models by 2028 and charging stations, betting big on the world's third-largest car market.
Kia plans to introduce locally optimised small EVs for the Indian market starting in 2025.
Analysts noted India's rich natural resources needed for EV supply chains, including lithium, as well as affordable labour costs are attracting carmakers to consider producing EVs in the country.
“India's average manufacturing labour cost is estimated to be about one-fourth of labour cost in China and the country's huge lithium mines would help carmakers that plan to make EVs in the country to better source battery materials,” said Shin Yoon-chul, an analyst at Kiwoom Securities.
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