Kia Motors India, which is set to launch its first product in India later this year i.e. the Seltos compact SUV, is also considering a low-cost electric vehicle for the Indian market. The South Korean automaker, which is a subsidiary of Hyundai Motors, aims at bringing this SUV to the Indian market in collaboration with the group firm. Furthermore, according to a company official, Kia also wants that electric vehicle for personal use should also be liable for support from the Government under its FAME II scheme.
Including the upcoming Seltos SUV, Kia plans to launch a total of 4 new models in the Indian market in the next two years. However, the low-cost electric vehicle in consideration for the Indian market is not going to be a part of these and exist as a separate project for the company. Kia Motors Corporation President and CEO Han-Woo Park told PTI that the company is still working on how to make low-cost EV and that he is considering to develop an EV for the Indian market with Hyundai. He clarified that the EV is not going to be a part of the upcoming four models which are planned to launch in India in the next two years.
At the 2018 Auto Expo, Kia had announced that it plans to introduce a diverse range of vehicles in India, including an India exclusive compact electric vehicle between 2019 and 2021. Park added that Kia Motors already has some products for hybrid, plug-in hybrid, electric vehicle and fuel cell vehicles which are being sold globally. He stated that Kia is ready to introduce EV car in India but it depends on infrastructure and government support policy. When the market is opportune, we will introduce the EV anytime to India.
On the other hand, Hyundai is all set to launch its first all-electric vehicle, the Kona SUV in India next month. Park said at present the cost of EV is very high, especially for the Indian market and without government support it will be a big challenge to sell EVs here. He added that last year, FAME II scheme was announced, supporting mainly two-wheeler and three-wheelers…That doesn’t include four wheelers for personal usage.
When asked if Kia wanted EVs for personal usages to be considered for government support, he said, “Yes, without government support it is not possible. The price is too high. Nobody wants to buy EVs.” The Rs 10,000 crore FAME II scheme envisages subsidy on two-wheelers that includes personal usage. For three and four wheeler segments, incentives will be applicable to vehicles used for public transport or registered commercial purposes. Through the scheme support 10 lakh electric two-wheelers, five lakh three-wheelers, 55,000 four-wheelers and 7,000 buses would be provided.