S.Korea's Kumho HT to set up local subsidiary in India

South Korea's automotive lighting device maker Kumho HT, Inc. announced on Monday its strategy to set up an India corporation, capitalizing on the burgeoning automotive market in the country.

The move aligns with the rapid increase in vehicle production and sales activities by global automakers in India, fueled by robust demand and favorable government policies.

The company is in the process of evaluating an estimated 30 billion won ($22.6 million) investment to establish its Indian arm and secure vital manufacturing facilities.

Following a thorough site assessment to confirm the viability of the proposed investment location, Kumho HT aims to complete its initial investment by November 2023. The firm has set an ambitious timeline to commence large-scale production and distribution by 2024.

Last year, India's passenger car market experienced significant growth, recording sales of 4.57 million units and a production output of 3.9 million units. 

The Indian government, addressing environmental considerations, has instituted policies to accelerate the adoption of electric vehicles (EVs). These policies aim to ensure that EVs make up as much as 30% of total automotive sales by 2030.

According to a company source, Kumho HT's decision to establish an India corporation dovetails with its global strategy to tap into India's fast-evolving EV market.

Armed with its technological expertise, the company aims to become a dominant player in the global electric vehicle components industry, capitalizing on the rising demand for such parts.

Write to Kyung-Ju Kang at qurasoha@hankyung.com