Long-term regulations required to introduce EVs for fleets in India: Hyundai

South Korean auto major Hyundai Tuesday said automobile manufacturers will need time and proper long-term regulations for introducing electric vehicles (EV) for fleets in India.

The comments have come amid reports that the Indian government plans to make it mandatory for taxi aggregators to have 40 per cent of their vehicles to be EVs by 2026.

The company, which is present in India through a wholly-owned subsidiary Hyundai Motor India Ltd (HMIL), also said it is gearing up to introduce its premium electric vehicle Kona, next month, which will be locally assembled at its Chennai plant.

Speaking with reporters here, HMIL Managing Director and CEO S S Kim said while the company is yet to learn officially from the government about EV requirements for cab aggregators like Ola and Uber, if such a thing were to happen, "in terms of timing it will be too fast".

"We do believe it is in the right direction but for the automobile manufacturers we need time to prepare for such transitions," he said.

Kim further said that more clarity is required on the road map for conversion of fleets into EVs.

In March, Hyundai Motor Group had announced that it would invest USD 300 million in India's ride hailing service provider Ola. The investment will be jointly made by group firms Hyundai Motor Company and Kia Motors Corporation.

Currently, Hyundai offers its EVs in premium segment and as per its agreement with Ola, it will supply compact sedan Xcent and hatchback Grandi10.

Last week, a media report said several ministries and Niti Aayog had recommended gradual conversion of fleets of taxi aggregators like Ola and Uber to EVs, targeting 40 per cent of the total, by 2026.

When asked if Hyundai is developing small EVs which could be used by taxi aggregators, Kim said, "We are developing but we need time to come up with more meaningful mobility solutions for India."
The model will be locally assembled from imports of completely knocked down units from Korea, he said adding, "We hope to sell hundreds of units annually in India."