Hyundai to invest an additional $744 mn in Indian hydrogen biz

Hyundai Motor Co., South Korea’s top automaker, is set to invest an additional $744 million in India for a hydrogen ecosystem to lead the future mobility business in the world’s third-largest car market.

Hyundai Motor India Ltd., a wholly owned subsidiary of the South Korean automaker, said on Monday it signed a memorandum of understanding to spend 61.8 billion rupees ($743.8 million) on a dedicated hydrogen resource center and other projects in the state of Tamil Nadu.

The fresh spending plan was on top of its previous plans announced in May last year to invest 200 billion rupees over a decade from 2023 to expand its electric vehicle business in one of the world’s fastest-growing eco-friendly car markets.

“This collaboration with the state government goes beyond mere investment. It is a catalyst for cultivating a robust hydrogen technology ecosystem that mirrors our commitment to sustainability and a green future,” Hyundai Motor India MD & CEO Kim Unsoo said.

Hyundai aims to develop India as a global hydrogen hub while making the eco-friendly energy source more available in the world’s most populous country. The automaker plans to cooperate with the Indian Institute Of Technology-Madras in Chennai, dubbed the Detroit of Asia.

NEXO, CRETA EV

The maker of the Exter sport utility vehicle is also researching a potential launch of its hydrogen fuel cell car model Nexo in India.

Hyundai, the No. 2 carmaker in India together with its affiliate Kia Corp., plans to launch new models, including an electric version of the Creta, one of the best-selling SUVs in the market next year to compete with the Tata Nexon.ev.

Hyundai aims to sell 20,000-25,000 units of the Creta EV a year.

With about 4.73 million car sales in the domestic market last year, India is the world’s third-largest auto market after China and the US and among the fastest-growing EV markets in Asia. The eco-friendly cars made up only 2% of the Indian automobile market last year, but the market is expected to increase quickly amid the country’s determination toward electrification, industry sources said.

Write to Nan-Sae Bin at binthere@hankyung.com
 

Jongwoo Cheon edited this article.