Hyundai to develop an affordable electric car
On realizing the Indian car industry will soon see a boom, with substantial Government backing, in the EV sector, Hyundai looks to lead the EV charge. The most recent development to come from the South Korean carmaker is of an investment plan, which aims to address the scarcity of affordable electric vehicles in the subcontinent.
According to a report by Times of India, Hyundai is looking to invest INR 2,000 crores on developing a sub INR 10 lakh electric car, set to be manufactured at the firm’s Chennai facility in India. Although the body type is unknown at the moment, the firm seems to keep the options open. Further, this affordable EV will be exported to international markets such as the Middle East, Latin America, Africa and parts of Asia as well.
If the current trend in body shapes is anything to go by, this new EV could very well be a compact SUV. However, rumours state that the firm won’t mind the idea of a premium electric hatchback as well. In both cases, sedans stand a slim chance of making it big in the EV sector, initially at least.
The mass manufacturer also looks to set up a plant for manufacturing electric batteries, the fuel for these EVs, in India. Reports suggest that the carmaker is already in talks with potential partners, mostly from the technology industry including the likes of LG and Samsung along with a bunch of Chinese companies.
The Government’s recent budget allocations for EVs provided a much-needed boost for EV producers to pick up the pace. With a tax benefit of INR 1.5 lakhs on the loan interest taken to pay off the purchase of the electric vehicle along with a reduction in GST rate for EV purchase from the previous 12 per cent slab to now at just 5, the government is clear to point its full support and promotion towards cleaner or rather electric mobility.
Hyundai propelled itself to a major headstart by announcing the launch of the Kona Electric, India’s first electric SUV. However, as the Kona Electric takes the CKD route to arrive on Indian shores with just a few parts being locally manufactured, it earns itself the tag of a premium car with prices starting upwards of INR 25 lakh. With the upcoming model, Hyundai aims to bring this new propulsion fuel to the middle-class audience, which in India, forms a significant market share.