Hyundai Developing Mass-Market Electric SUV For India
Although the EV passenger car segment is very small now, it will gain traction when more mass-market products are launched.
Hyundai is developing an India-centric electric SUV that will be a mass-market product, as the company wants to position itself as a leading smart mobility solution provider.
This has been revealed by MD and CEO, Hyundai Motor India Limited, Seon Seob Kim. He also stated that the firm’s R&D team is working on the most suitable body type for the Indian market.
Due to the current countrywide craze over anything closely resembling an SUV, Hyundai’s EV for India will also be styled like one.
Several other carmakers are also looking to bring affordable electric vehicles to the market, many of which are expected to be small SUVs.
Hyundai is of the idea that although the EV segment is very small now, if more mass-market products are introduced, the segment it will surely gain traction.
Having already launched the Kona Electric, 453 units of which got sold till September this year since its launch, the firm would have got a clear idea about how the market situation is here.
The new Hyundai India electric SUV will fall under the firm’s planned investment of over $40 billion (Rs. 2.98 lakh crores) into creating new models and technologies for electrified and autonomous vehicles globally.
Such huge investment is necessary if Hyundai is to realise its target of introducing 44 electrified models by 2025 with an annual sales target of 1.67 million units worldwide.
Heavy localisation will be the route followed to make electric vehicles affordable and mass-centric in India, since in February 2020, the government hiked the basic custom duty on CKD of electric vehicles from 5 per cent to 15 percent.
Currently, Hyundai is working with suppliers to localise EV parts to the tune of 90 percent. For critical parts, such as batteries, the carmaker is talking to potential suppliers such as LG Chem.
Source – ETAuto.com