E-car sops removal to hit growth: Hyundai

NEW DELHI: Hyundai, the country’s second-biggest carmaker, has come out strongly against the removal of consumer benefits from electric cars and said the move will result in slowing down the pace of electrification.

Y K Koo, MD of Hyundai India, said that new technologies, especially the clean-fuel drivetrains, require government support as well as consumer subsidies to gain traction.

“I don’t want to make profit from the sale of electric cars… But what kind of a support is the government giving us to bring the zeroemission technology?” Koo told TOI, while expressing reservations on a move by the heavy industries ministry to remove the subsidy that consumers get when purchasing an electric vehicle.

“Prices will go up, and the volumes and demand will be limited. Electric cars will end up merely as showcase products in case of no gover nment support.”

The government currently gives a cash subsidy of up to Rs 1.3 lakh on purchase of an electric car as part of clean-energy programme called ‘FAME’ (Faster Adoption & Manufacturing of Hybrid and Electric Vehicles). However, the ministry has now proposed to take away these benefits in the second phase of FAME that is likely to be rolled out towards the end of the year.

Koo said such moves will harm the interest of having more cleaner vehicles. Hyundai plans to launch its Kona electric SUV in India next year, and this is likely to cost Rs 20-25 lakh.

Koo said that while the SUV will be assembled here, the company can look at introducing electric versions of more models — including some of the large-selling mass cars — if there is healthy demand. The company can even manufacture them at its plant in Chennai.

“But we need government support. The government can reduce the GST on electric cars from the existing 12% to around 5%, while also rewarding technologies that are more efficient. Also, the import duty for critical components for electrics should be reduced. Please remember, this is an investment for the future.”

Kona SUV offers a range of over 300 kms on a single charge, and Koo said that the company is working on technologies that will make it easier for consumers to adapt to electric vehicles.

Hyundai Motor India Ltd.