Hyundai India share price: Hyundai Motor targets 100% renewable energy by 2025, to set up two TN units

Introductions

Hyundai India share price: Hyundai Motor India Ltd (HMIL) is taking an exciting step toward helping the planet by aiming to use 100% renewable energy for its manufacturing by 2025. To achieve this, the company has partnered with Fourth Partner Energy Ltd (FPEL) to build two renewable energy plants in Tamil Nadu. This project highlights Hyundai’s commitment to protecting the environment and creating a greener future.

In this blog, we’ll explore how Hyundai is moving toward sustainability, what this means for India, and how it could impact industries and even the Hyundai India share price in the long run.

What Is Renewable Energy, and Why Is It Important?

Renewable energy comes from natural sources like the sun, wind, and water that never run out. Using renewable energy reduces pollution, lowers carbon dioxide emissions, and helps fight climate change. Many companies worldwide, including Hyundai, are working to adopt renewable energy to make their businesses more eco-friendly.

Hyundai’s Current Use of Renewable Energy

Hyundai already uses renewable energy for 63% of its energy needs (as of June 2024). This means more than half of the electricity used in its factories comes from sources like the sun and wind. The company is now aiming for 100% renewable energy by 2025, which will make it one of the first carmakers in India to achieve this target.

This plan is not only about protecting the environment but could also positively influence the Hyundai India share price, as more investors are now interested in companies focused on sustainability.

Two New Renewable Energy Plants in Tamil Nadu

To reach its goal, Hyundai will build two renewable energy plants in Tamil Nadu. The company has partnered with Fourth Partner Energy Ltd (FPEL) for this project. These plants will use both solar and wind power to generate clean energy.

Key Details About the Project:

1. Investment: Hyundai is investing ₹38 crore in the project.
2. Ownership:
   • Hyundai will own 26% of the project.
   • FPEL will hold 74% of the project.
3. Duration: The agreement will ensure a 25-year supply of renewable energy for Hyundai’s factories.

This partnership will help Hyundai reduce its carbon emissions while securing a reliable and sustainable energy source.

How the Project Will Help the Environment

The renewable energy plants in Tamil Nadu will produce over 250 million units of clean energy every year. This energy will power Hyundai’s factories and reduce 2 lakh tonnes of carbon dioxide emissions annually.

Reducing carbon emissions is critical for slowing down global warming and protecting the planet for future generations. Hyundai’s efforts will not only benefit the environment but also strengthen its reputation as a company that cares about sustainability, which could have a positive impact on the Hyundai India share price.

Hyundai’s Broader Sustainability Goals

Hyundai’s plan to use renewable energy is part of its larger global vision called “Progress for Humanity.” This vision focuses on creating cars and running operations in a way that benefits both people and the planet.

Hyundai is also part of the RE100 Initiative, a group of global companies committed to using 100% renewable electricity. By joining this initiative, Hyundai has made a public promise to contribute to a greener world.

Hyundai’s Past Achievements in Renewable Energy

Hyundai has already done a lot to adopt renewable energy and reduce emissions. Here are some of its key efforts:

1. Rooftop Solar Plant:
   Hyundai installed a 10 MW solar plant on the rooftop of its manufacturing facility in Chennai. This plant generates renewable energy to meet a portion of the factory’s electricity needs.
2. Green Power Purchases:
   Since October 2022, Hyundai has been buying green power from the Indian Energy Exchange (IEX) to increase its use of renewable energy.
3. Low-Carbon Practices:
   The company is also reducing emissions across its supply chain by adopting low-carbon practices in production and distribution.

These efforts have already made Hyundai a leader in renewable energy usage among automakers in India, potentially boosting the Hyundai India share price as the company gains recognition for its sustainability initiatives.

Why This Project Matters for India

India is one of the largest producers of carbon emissions in the world, but the country is also working hard to adopt renewable energy. Hyundai’s project in Tamil Nadu supports India’s renewable energy goals and sets an example for other companies to follow.

When big companies like Hyundai use renewable energy, it inspires smaller businesses to adopt eco-friendly practices as well. This could lead to:

• Lower pollution levels in India.
• Greater investments in renewable energy projects.
• A stronger focus on sustainability in industries could positively impact stocks like the Hyundai India share price.

What Is Group Captive Mode?

The two renewable energy plants Hyundai is building will operate under a group captive mode. This means multiple parties come together to invest in and use the energy produced by the plants.

In this case:

• Hyundai will own 26% of the plants.
• FPEL will own 74%.

This model ensures Hyundai has access to clean energy for its operations while sharing the costs and risks with FPEL.

How This Affects Hyundai’s Future

By using renewable energy, Hyundai is preparing for a future where businesses will need to adopt sustainable practices to stay competitive. Customers and investors increasingly prefer companies that care about the environment, and this trend could further boost the Hyundai India share price.

Statement from Hyundai’s Leadership

Hyundai’s leadership has expressed their excitement and commitment to this project. Gopalakrishnan Chathapuram Sivaramakrishnan, Hyundai’s Chief Manufacturing Officer, said:

“This partnership marks a pivotal milestone in Hyundai Motor India Ltd’s journey and reaffirms our commitment towards sustainability. Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025.”

He also highlighted how the project reflects Hyundai’s global vision of “Progress for Humanity.”

Statement from Fourth Partner Energy

Vivek Subramanian, Co-Founder and Executive Director of Fourth Partner Energy, shared his thoughts on the partnership:

“This collaboration showcases the critical role corporates play in building a sustainable future. Together, we are setting a precedent for responsible energy consumption.”

Subramanian also emphasized how the renewable energy plants will help Hyundai meet its sustainability goals while contributing to India’s renewable energy ambitions.

How This Project Impacts the Hyundai India Share Price

Projects like these can positively affect the Hyundai India share price in several ways:

1. Improved Brand Image: Companies focused on sustainability are more attractive to eco-conscious customers and investors.
2. Cost Savings: Renewable energy reduces electricity costs in the long term, improving profitability.
3. Increased Investor Interest: Many investors now prioritize companies with strong environmental, social, and governance (ESG) practices.

As Hyundai continues to lead the way in renewable energy, its commitment to sustainability could make the Hyundai India share price more appealing to investors.

Conclusion: A Step Toward a Greener Future

Hyundai Motor India’s goal of achieving 100% renewable energy by 2025 is a major step toward a sustainable future. By building two renewable energy plants in Tamil Nadu, the company is not only reducing its carbon footprint but also setting an example for other industries to follow.

This project reflects Hyundai’s dedication to sustainability and innovation, aligning with its vision of “Progress for Humanity.” It also highlights the company’s leadership in renewable energy adoption, which could positively influence the Hyundai India share price over time.

As Hyundai continues its journey toward 100% renewable energy, it’s clear that the company is not just building cars—it’s building a better, greener future for everyone.