You are here: Home » Companies » News
Business Standard

Hyundai Motors working on compact, affordable electric car for India

Hyundai plans to invest in launch electric vehicles in India by 2028, making a clean energy drive in a country with some of the most polluted cities in the world

Hyundai Motors | Hyundai electric vehicles | Hyundai e-cars

Reuters  |  NEW DELHI 

Hyundai Motor Co signaled it aims to construct a liquefied natural gas facility to supply electricity to the Ulsan factory, which can churn out around 1.4 million vehicles a year. (Bloomberg photo)
Representational Image

By Aditi Shah

NEW DELHI (Reuters) - South Korea's Hyundai Motor Co has begun developing a small electric car for India for the future even as it focuses on bringing more premium models to the country starting this year, an executive told Reuters on Thursday.

Various departments are working on issues such as charging ecosystem, sales network, manufacturing and the kind of assembly process the carmaker should have, Tarun Garg, director sales, marketing and service for Hyundai India, said in an interview.

"We have to look at as much localisation as possible," Garg said, referring to sourcing and producing components locally to control costs and keep the cars affordable.

While he did not comment on when the company would launch its small electric vehicle (EV) in India, Garg said the timing has to be right "so we are able to bring it at the right price".

"The ecosystem should be ready, we should have enough charging," he said.

The small EV is part of Hyundai's broader plan to invest 40 billion rupees ($512 million) to launch six electric vehicles in India by 2028, making a clean driving push in a country with some of the world's most polluted cities.

In India, EVs account for less than 1% of total car sales, but the government is aiming for a share of 30% by 2030 as it looks to reduce pollution and fuel imports.

Until its small EV hits the roads, Hyundai will launch premium models starting with its Ioniq 5 electric crossover this year and will gradually move down the price chain, Garg said.

The Ioniq 5, which has a range of about 480 kms, is priced starting at around $44,000 in the United States.

"When it was about cars with internal combustion engines, we had this bottoms-up approach. In electric, we are trying the top-down approach," he said, adding that for mass market EVs to succeed there needs to be a widespread charging network and lower battery prices.

Hyundai in 2019 launched its Kona EV in India, mainly to test the market, but sales were tepid as the price was high and public charging infrastructure was negligible. Garg said lessons from the Kona will feed into its future EV strategy in India.

($1 = 78.0499 Indian rupees)


(Reporting by Aditi Shah; Editing by David Gregorio)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, June 16 2022. 23:46 IST