Hyundai Motor India Drives Localization with Atmanirbhar Bharat Initiative

Published 21-01-2025, 10:58 am
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Hyundai Motor (KS:005380) India Limited (HMIL) has firmly aligned itself with India’s Atmanirbhar Bharat vision by achieving significant localization milestones. At the Bharat Mobility Global Expo 2025, HMIL showcased its indigenization roadmap, which has resulted in 92% localization in manufacturing. By working closely with over 194 vendors, HMIL has localized 1,238 critical components, fostering substantial forex savings and employment opportunities.

Since 2019, these efforts have led to forex savings exceeding $672 million (INR 5,678 crore) and created direct jobs for more than 1,400 individuals. Highlighting HMIL’s commitment to Make-in-India, Mr. Gopalakrishnan Sivaramakrishnan, Chief Manufacturing Officer at HMIL, stated, “Our localization strategy leverages India’s skilled workforce and advanced engineering to build world-class technology domestically.”

A significant milestone in HMIL’s localization journey is the commissioning of a state-of-the-art battery-pack assembly plant in Chennai, Tamil Nadu (NSE:TNNP). Established in partnership with Mobis India Limited, the facility has an annual capacity of 75,000 battery packs in its first phase. It caters to various battery types, including NMC (Nickel-Manganese-Cobalt) and LFP (Lithium-Iron-Phosphate), optimizing costs and ensuring streamlined supply for Hyundai EVs.

The Hyundai CRETA Electric is the first model to feature these locally assembled battery packs, marking a leap forward in HMIL’s EV strategy. Beyond EV batteries, HMIL has achieved full localization for critical components like alternators, alloy wheels, and catalytic converters, along with advanced technology parts such as Tyre Pressure Monitoring Systems and NOX sensors.

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While Hyundai’s localization efforts are commendable and align with India's push for self-reliance, investors may question whether this makes the stock a buy. According to InvestingPro, Hyundai Motor India’s intrinsic value stands at INR 1,773.7 per share—nearly matching the current market price of INR 1,782.7. This signals a balanced valuation, making the stock an avoid for now, unless a price dip occurs.

Investors seeking deeper insights into valuations and strategic moves can rely on InvestingPro, a comprehensive tool offering fair value metrics and advanced analysis. With its New Year sale providing discounts of up to 50%, it’s an excellent opportunity for investors to access cutting-edge tools and stay ahead in the market.

In conclusion, Hyundai Motor India’s localization drive underscores its commitment to India’s growth story, setting benchmarks in technology and sustainability, while offering a cautious yet promising outlook for investors.

Read More: Simplify Stock Market Investing with InvestingPro’s Piotroski Scor (EPA:SCOR)e

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