NEW DELHI: Hyundai Motor will invest more than Rs 3,200 crore in India in four years to expand product portfolio and launch cars, including a series of electric vehicles, as the company bets on green mobility to strengthen its local operations.
The South Korean carmaker, which completes 25 years in India, has over 17% share of the domestic passenger vehicles market, but clearly feels that electric mobility will be a critical component for growth in future, according to MD S S Kim.
The future product lineup will comprise an ‘affordable’ locally-made electric car that involves an investment of Rs 1,000 crore. The company is finalising localisation plans for electrics and may explore a partnership with group company Kia as the latter is also looking at domestic production of greens to make them affordable and competitive.
Hyundai currently sells the Kona e-SUV in India, but this is more of a showcase model with a price of nearly Rs 24 lakh (ex-showroom).
Kim told TOI that while the company has options to drive in “global EVs” into India, it now wants models that are more appealing in price and driving range to have a wider appeal. “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.”
Work is on to develop the first electric that will be locally produced, but Kim did not disclose the body style that the vehicle will have. Company insiders, though, hinted that “it should be a mini SUV in all probability, in line with the current trends in the market”.
India offers a host of benefits for electrics, both at the central and state levels. While the GST on greens is at 5%, against the 28%-plus stipulated for petrol and diesel cars, the deal is further sweetened as many state governments do not charge road and registration charges on electrics.