Hyundai Planning To Bring Electric SUV And Hatchbacks To India

With hybrid vehicles taking a tax hit as the Government shifts its focus on electric cars, carmakers are in a fit to rethink their strategies for future vehicles in the country. Topping this list is Hyundai. With the strategy of hybrid vehicles no longer profitable, the Korean carmaker is now laying down new plans for the electrification of its hatchbacks in the country. The first casualty is the Hyundai Ioniq hybrid, plans for which are reportedly shelved indefinitely. Also on cards is a new mini E-SUV which could be here as early as next year. On an unrelated note, Hyundai has also confirmed the launch of the four-wheel drive Tucson which is likely to take place next year.

Hyundai will be conducting a feasibility study to check whether the electrification of their small vehicles in the country can be carried out in a profitable manner. The cars under the scanner are likely to be the Grand i10 and the i20. In a conversation with TOI, Hyundai India MD, Y K Koo said, "Small cars are more convenient, more easy, and more practical for electric than bigger-sized vehicles when it comes to the Indian market.” Koo also said that it's too early to give an estimate about the investments required to launch an electric fleet in the country, and the same can be said only after the feasibility study.

Hyundai has the electronic technology available globally but the question here is that whether it is feasible to get it to India. Our country is gearing up to make all vehicles on sale electric by 2030. Though this task seems a little far fetched, the new tax reforms and now manufacturers' decisions are all flowing in the same direction. The new GST tax structure imposes just 12 per cent cess on electric cars. Other types attract higher taxes - 29 per cent for small petrol cars, 31 per cent for small diesel cars and 43 per cent for all others. Though for SUVs and luxury cars, this might soon be changed to 53 per cent.

Leading the charge for electric vehicles in India, currently, is Mahindra, with three e-vehicles in its fleet. Tata also has plans to electrify the Tiago hatchback, though that project is still underway without a public deadline.

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In June, Anand Mahindra also took to Twitter to invite Elon Musk and Tesla to India. He tweeted "Time you got out here Elon. You don't want to leave that whole market to Mahindra, do you?? The more the merrier--and greener..!" Musk acknowledged this invitation and tweeted out, "India commits to sell only electric cars by 2030. It is already the largest market for solar power."

Source - TOI

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