Hyundai Motor President Chang Jae-hoon, second from left, and other key company executives attend a press conference at the headquarters of the National Stock Exchange of India in Mumbai, Tuesday (local time). Korea Times photo by Lee Min-hyung

MUMBAI — Hyundai Motor aims to dominate India's lucrative electric vehicle (EV) market by localizing production for key EV components and strengthening its partnership with the local government, a senior executive at the carmaker said.

Unlike advanced markets such as the United States, Europe and China, India's EV market is still in its infancy. This represents a huge growth potential for carmakers, including Hyundai Motor India, as electric cars account for less than 2 percent of the Indian vehicle market.

"We maintain a positive view on the Indian stock market for a string of factors, as the government here strongly supports eco-friendly vehicles," Kim Un-soo, managing director at Hyundai Motor India, told reporters during a press conference after the Indian unit's symbolic debut on the stock market here on Tuesday.

He shared plans for the carmaker to expand its EV lineup here and achieve cost-effectiveness when manufacturing EVs.

"We plan to launch four EVs here and consider localizing production for key EV parts, including battery packs, down the road so that we can enhance our price competitiveness in India," Kim said. "Even if EVs account for less than 2 percent in the total vehicle market here, we expect India to grow further as one of the world's most influential EV markets in the future."

The executive also cast a positive outlook on the economic impact of India's young population.

"The demographic structure of a high proportion of young people gives a rosy outlook for our expansion into the Indian economy," he said. "The Indian government is also very optimistic about offering a package of incentives for EV manufacturers."

Kim said Hyundai Motor India decided on the timing of its initial public offering (IPO) because it is the opportune time for the carmaker to solidify its footing in India as a manufacturer of EVs and other eco-friendly vehicles.

The timing of Hyundai Motor India's IPO gained keen attention because the global automotive industry is now seeing a slowdown in customers' transition to EVs, widely known as an "EV chasm."

Regarding lingering questions, Hyundai Motor Group Executive Chair Chung Euisun said that "the chasm is attributable to the weak charging infrastructure and high battery costs," and "many of those downside effects will be recovered within six to seven years."

"Most of all, the Indian government is stressing the importance of environment and EV transition," Chung said during the IPO ceremony. "If challenges in technologies and costs are addressed, it is a matter of time for the country to transform into an EV market."

Hyundai Motor's Creta SUV / Courtesy of Hyundai Motor

Hyundai Motor is on the path to improving its cost competitiveness by localizing more vehicle parts. According to the company, it is establishing a battery pack assembly factory at its plant in Chennai to ensure the success of its next model, the Creta EV. The company added that it is considering the local production of battery cells.

The carmaker also plans to localize other core parts, such as power electric systems, for its long-term growth in India and diversify its EV lineup for Indian customers.

Reflecting on the firm's growing popularity, the company won the country's prestigious Indian Car of The Year award for the eighth time and received the Green Car of The Year for its contribution to eco-friendly mobility.