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    PLI proposal: Hyundai says Hyundai Global Motors is not its arm

    Synopsis

    Senior government officials told ET that a team has been set up to consider the representation made by Hyundai Motor, which has accused Hyundai Global Motors of wrongly utilising its trademark, tradename and logo, and making misrepresentations before authorities in the country.

    PLI proposal: Hyundai says Hyundai Global Motors is not its armAFP
    In the event Hyundai Global Motors is disqualified, the next company on waitlist is likely to get its slot.
    The government is re-examining a proposal from Hyundai Global Motors to set up a battery manufacturing facility under India’s production-linked incentive (PLI) scheme, after Hyundai Motor Co and the Korean automaker’s local subsidiary said they have no links with this company.

    Senior government officials told ET that a team has been set up to consider the representation made by Hyundai Motor, which has accused Hyundai Global Motors of wrongly utilising its trademark, tradename and logo, and making misrepresentations before authorities in the country.

    “The matter is under review. We are consulting with the legal team. A decision will be taken shortly,” one of the officials said, speaking on the condition of anonymity.

    Hyundai Motor, along with its subsidiary Hyundai Motor India Ltd (HMIL), has intimated the government that Hyundai Global Motors is not a subsidiary, group company or an affiliate of either of them.

    In March, four companies — Rajesh Exports, Hyundai Global Motors, Ola Electric Mobility and Reliance New Solar Energy — were selected as beneficiaries under the Rs 18,100 crore PLI scheme for advanced chemistry cell battery storage. Another five companies — Mahindra & Mahindra, Exide Industries, Larsen & Toubro, Amara Raja Batteries, India Power Corp — were put on waitlist.

    In the event Hyundai Global Motors is disqualified, the next company on the waitlist is likely to get its slot, said a person aware of the matter.

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    Hyundai Global Motors, also based in South Korea, could not be reached for comment. The company website says it is in the business of exporting completely knocked down units of commercial bus and trucks, manufacturing of special vehicles, airbag inflators and lithium electric batteries.

    In response to a query from ET, a Hyundai Motor executive said: “It has come to the notice of Hyundai Motor Company and HMIL that a company by the name of Hyundai Global Motors Co Ltd, South Korea, has misrepresented itself and used these trademarks in the course of its business activities in India, which is a violation of the intellectual property rights of Hyundai Motor Company and HMIL. Hyundai Motor Company and HMIL would therefore like to clarify that we do not have any connection, whatsoever, with Hyundai Global Motors Co Ltd, South Korea, and the latter is neither our affiliate, group company or a subsidiary, and therefore we are in no way liable for its actions in this regard.”

    Hyundai Motor and HMIL have also issued public notices, informing the general public, traders, business associates and government and non-government bodies to deal with Hyundai Global Motors at their own risk, without any recourse to Hyundai Motor and HMIL.

    “Hyundai Motor Company and HMIL are the registered trademark owners of the Hyundai name and logo, and no other company is entitled to use this name and the corresponding trademark for their own benefit without permission from the former,” the Hyundai Motor executive told ET.

    Sources in the know told ET that Hyundai Motor had filed a case against Hyundai Global Motors in Korea, and following a court order in November 2021, the latter changed its corporate name to Global Motors Co.

    In its application, Hyundai Global Motors has outlined plans to set up a 20 GWh plant within the next two years under the PLI scheme.

    The government’s PLI scheme is expected to attract investments of up to Rs 45,000 crore in setting up 50 GWh (Gigawatt hours) battery storage capacity in India, helping save oil imports of up to Rs 2.0-2.5 lakh crore during the five-year scheme period. The plants have to be commissioned within two years after which incentives will be given on the sales of batteries.

    Advanced chemistry cells (ACCs) are the new-generation energy storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. Local demand for ACC batteries is currently being completely met through imports.

    As per the government notification issued for the PLI scheme in ACCs in June 2021, the beneficiary firm will have to commit to set up a minimum of 5 GWh of ACCs manufacturing facility. The total annual cash subsidy to be disbursed by the government will be capped for 20 GWh per beneficiary firm. The beneficiary has to ensure a domestic value addition of at least 25% and incur the mandatory investment (Rs 225 crore/GWh) within two years. The domestic value addition has to be increased to 60% within five years, either at the mother unit in-case of an integrated unit, or at the project level in case of a 'hub & spoke' structure. Incentive disbursements would commence once the committed domestic value addition and actual sale of the ACCs begin.



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