“Hyundai Motors has expressed concerns about frequent policy changes in India. Stating that it impacts investment decisions and the smooth transition to new technologies like electric vehicles (EVs)” said in Draft Red Herring Prospectus filed to SEBI.
They have called for greater policy stability and transparency to ensure smooth technology transition and localization in the country.
Hyundai plans to invest a substantial amount in India. Mainly focusing on launching electric vehicles and creating the necessary component and charging infrastructure.
They aim to localize the manufacturing of EVs for the mainstream market. Also secure local production capabilities for key parts like cells, battery packs, power electronics, and drivetrain. This focus on localization is aimed at maximizing the price competitiveness of their EV models.
While the Indian government’s Production-Linked Incentives (PLI) scheme aims to boost domestic manufacturing, there have been some challenges, as seen in a recent incident where the wrong Hyundai entity was initially selected for a battery subsidy.
However, this decision was met with controversy and was later changed, with Ola Electric being selected instead. This highlights the need for careful implementation and clear communication to avoid such misunderstandings.
Finally, Hyundai is committed to the Indian market and sees great potential in the growing demand for electric vehicles. However, they emphasize the need for a stable and predictable policy environment to facilitate their investments and ensure a smooth transition to new technologies. In DRHP, Hyundai IPO aims to raise approximately $2.5 billion to $3 billion, valuing the company at $25-30 billion.