Hyundai to Invest $1 Billion in India

Hyundai Motor Co. expects to invest $1 billion in India by 2020 in a bid to boost its market share five points to 17%. Last year India’s car market topped a record 3 million units.

Hyundai says it will spend $900 million over three years to introduce its first electric car in India, debut two all-new models, launch two next-generation products, roll out two facelifted vehicles, upgrade powertrains and open a $100 million Indian corporate office.

The EV will go on sale in 2019. It is expected to be either the Hyundai Ioniq sedan or an all-electric version of the company’s Kona small crossover vehicle. The EV will be assembled in Chennai from imported kits. The company says it is shopping for a battery supplier in India, China and South Korea.

The two all-new vehicles will be a small gasoline-powered SUV code-named Qxi due in 2019, followed by a small family sedan code-named AH2.

Hyundai says its Chennai facility has the capacity to make 713,000 vehicles per year, enough to meet production plans to 2020. Last year the factory operated at 90% of capacity to make 678,200 vehicles, about 22% of them exported.