According to Hyundai, electric mobility will play a crucial role in the company’s future growth in the Indian market
Electrification is steadily taking hold of the automobile industry all over the globe, and the same is happening in India as well. South Korean carmaker Hyundai recently revealed that it will invest more than 3,200 crore in the Indian market in the next four years. The capital will go towards expanding the manufacturer’s lineup here, including new EVs.
Out of the total investment, Rs. 1,000 crore will go towards the development of a new affordable EV. The vehicle will be manufactured locally, and the company is already in talks with local vendors for sourcing components. Hyundai may also seek a strategic partnership with sister brand Kia, as the latter also has plans to add EVs to its portfolio in India.
Currently, Hyundai Motor India Ltd (HMIL) only has one electric vehicle in its arsenal – Kona EV – which is priced from Rs. 23.75 lakh to Rs. 23.94 lakh (ex-showroom, New Delhi). Due to the high price tag, the vehicle has remained a niche product in our market. The addition of an affordable EV would help the manufacturer expand its audience, and consequently improve EV sales.
SS Kim, Managing Director, Hyundai Motor India, was quoted saying, “We should offer solutions that are affordable and reasonable. We are working on various studies in this aspect as we feel that electrification will be the main pillar of our operations in the future.”
Last year, Tata Nexon EV was the best-selling electric car in India. With prices currently ranging from Rs. 13.99 lakh to Rs. 16.40 lakh (ex-showroom, New Delhi), it is significantly more affordable than the Hyundai Kona EV, which is the primary reason for its higher sales numbers. A new, affordable EV will allow Hyundai to cater to a larger audience, and thus grab a bigger share of the electric car market.
The upcoming Hyundai electric vehicle is expected to be a mini-SUV. There are plenty of benefits available for EVs in India, like lower GST, and a few state governments waive the road tax and registration charges as well. That, along with local manufacturing, will allow the manufacturer to price the vehicle competitively.
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