After the successful launch of Hyundai Kona, Korean car manufacturers are hoping to launch another electric car priced at Rs 10 lakh in India. The recently launched Hyundai KONA has a hefty price tag of Rs 25 lakh which falls into the premium category of and is inaccessible to a huge number of Indians.
So Hyundai Motors India is thinking of spending around Rs. 2,200 crores to research and develop a more affordable electric SUV, especially for India.
Affordable Hyundai Electric Car In The Making
Currently, Hyundai KONA is the only long-range and consumer-focused electric vehicle available in India. It is not manufactured locally and rather imported from Korea, hence it costs a whopping Rs 25 lakh.
If we move past its expensive price tag, the KONA offers a best class battery range of 452 km on a single charge. If you live in Noida or Delhi then your average commute cost using a KONA would be Rs. 2/km, given that electricity cost is Rs 5 per unit.
Hyundai Motors obviously sees potential profits in more affordable electric cars for India. Hence it is trying to circumvent the high pricing issue for their next electric vehicle in India by making it locally at Hyundai plant in Chennai.
The company will likely establish a supply chain made up of local vendors for a cheap and efficient supply of parts. The latest incentives for manufacturing electric cars in India, which was proposed by the Government during the latest Union Budget, will help Hyundai in manufacturing electric vehicles locally.
Hyundai is currently working on the design of the upcoming electric car. It is not yet confirmed whether the car will be a mini SUV, a hatchback or a sedan. However, it is confirmed that the pricing of the upcoming Hyundai electric car will be “aggressive,” according to the company’s India Managing Director SS Kim.
According to Hyundai India’s chief, the target is to make an electric car priced around Rs. 10 lakh so that it is accessible for a huge number of Indians. In order to achieve this, Hyundai will invest Rs 2,000 crore or $300 million in research and development.
Automotive Makers To Target Affordable Electric Car Segment
The arrival of electric cars has given new hope to the automotive industry. For the past 6 months, the sale of 4-wheelers has been in a slump in India. However, with the renewed interest of the public in electric vehicles and Government support, the Indian automotive industry is seemingly going all in to develop affordable electric cars.
Thus the Rs. 10-15 lakh segment is the most favorite spot for all mainstream automakers. The upcoming Wagon R electric from Maruti Suzuki will be priced around Rs. 12 lakh, which is currently being tested in Gurgaon.
Other companies like Mahindra & Mahindra, MG Motors and TATA Motors are also actively working towards launching their own line of electric vehicles in India.
According to a recent report, Maruti Suzuki is also planning an electric version of Ertiga MUV, to be launched after Wagon R electric.
To further promote the research and development of electric cars, the BS6 emission norms will soon be launched by the Government. They’ll likely increase the price of several petrol/diesel-powered cars while giving an incentive to create more electric cars in India.