Hyundai India gears up for mass-market electric vehicles, to invest $200 million

Hyundai Motor India (HMIL) said it is working on a new platform to introduce mass market electric vehicles in India and is in talks with local vendors for supply of parts. The company has plans to launch such vehicles in two-three years.

A senior company official said it will have to invest a minimum of $200 million to set up this new platform for mass market EVs. In his first interactive session with Chennai mediapersons, SS Kim, managing director and CEO, HMIL, said: “Getting into mass market EV products is completely a different ball game and we need to develop a new platform. In addition to the existing vendors who will be asked to gear up for parts supply, we may need to have a few vendors to ensure maximum localisation.”

To a specific question, Kim said, “To develop a new platform for mass market EVs, the company requires to invest at least $200 million. We are working on plans to see that a mass market EV is introduced in India in two-three years. We have begun talks with vendors already.”

While declined to get into price point of such vehicles, Kim said, “Cost of the vehicle is an important determinant while catering to the mass market, which in turn requires high level of localisation of components. Currently, for Kona – the high-end EV – the localisation is too low. Hence, vendors will be asked to gear up for mass market EVs.

According to him, the company is excited to see an encouraging response to Kona EV with 120 bookings in short time. If the state governments come forward to exempt Kona from road tax, the price will come down sharply.

“We hope the Tamil Nadu government will exempt Kona with some road tax benefits when it unveils the EV policy, which is expected soon. We have started making Kona at our Chennai plant,” he said. On the possibility of introducing hydrogen fuel-based vehicles, Kim said, “We have no plans as the government is not supporting this technology. We are selling such products in the US and Korea among other countries.” In response to a question on $300-million investments Hyundai made it along with sister concern Kia earlier this year, Kim said: “It was an important investment. We see huge potential in India on shared mobility…”

Hyundai Motor India Ltd.