NEW DELHI: Riding high on the success of its SUVs, South Korean carmaker Hyundai Motor India Limited (HMIL) is planning to bring a mass electric vehicle to further strengthen its product portfolio and position itself as a smart mobility solution provider. It is currently developing a mass electric vehicle to take on the competition, a top executives told ETAuto in an exclusive interaction.
“Currently EV segment is kind of a nice segment. So, we don’t see any deep pulling demand in that area. However, if more mass-market products are introduced in the segment it will surely gain traction. So we are preparing and developing a mass-market electric vehicle for India.” said Seon Seob Kim, MD & CEO, Hyundai Motor India told ETAuto.
However, Kim emphasised that the research & development team is working on the most suitable body type for the Indian market in the electric vehicles class and the development is futuristic based on the needs of Indian customers.
Two people aware of the matter informed that Hyundai India will most likely bring a mass-market electric SUV in the coming years.
HMIL is one the mass market brand which has launched electric SUV Kona in India. The company has so far sold 453 units of Kona till September since its July 2019 launch.
The company which has pioneered in bringing new technologies such as connected and electric has planned investment of over $40 billion into innovation, new models, and technologies for electrified and autonomous vehicles.
The huge investment coupled with an all-electric platform will play a crucial role in realising Hyundai’s future target – introducing 44 electrified models by 2025, with sales projected to touch a total of 1.67 million marks annually. With this bulk launch, the Korean carmaker intends to be “one of the world’s top three EV manufacturers” by 2025.
In its blueprint to take on the Indian market, the carmaker will take the heavy localisation route to make electric vehicles affordable and mass-centric. It is currently working with many suppliers to localise electric vehicle parts to achieve a high localisation level of 90 percent. Moreover, for critical parts such as batteries, the carmaker is talking to potential suppliers such LG Chem. Even today HMIL localise some plastic parts and other parts of Kona to counter the recent hike in customs duties.
In February 2020, the government hiked basic custom duty on completely built-up units or CKD of electric vehicles from 5 per cent to 15 percent. With this, electric vehicles such as Hyundai Kona and Morris Garages’ eZS have become costlier.
Industry experts believe that to achieve electrification of the passenger vehicle fleet in India both government and companies have to work together in order to bring the right technology and solution best suited for the Indian market. However, a hike in customs duties gives an advantage to local players but at the same time inhibits a better latest technology or best mobility solution to debut India.
Despite the various announcements on incentives of electric vehicles across various states and under FAME policy, the electric car market in India is yet to take flight. With less than half a dozen options available in the market, electric vehicle in India continues to struggles for basic charging infrastructure and adequate driving range. The market is currently cornered by Tata Nexon EV which contributes over 61.4 percent of total electric car sales in India, followed by MG eZS.
Sales of electric vehicles in India
| Model | May | June | July | August | September | FY21 | FY21 Market share |
| Tata Nexon | 78 | 188 | 286 | 296 | 303 | 1,151 | 61.4% |
| MG eZS | 38 | 145 | 85 | 119 | 127 | 514 | 27.4% |
| Tata Tigor | 25 | 37 | 24 | 9 | 5 | 100 | 5.3% |
| Hyundai Kona | 4 | 15 | 25 | 26 | 29 | 100 | 5.3% |
| Mahindra e-Verito | 0 | 1 | 6 | 0 | 2 | 9 | 0.5% |
| Total | 145 | 387 | 426 | 450 | 466 | 1,874 |
*Source: Industry Data
