Hyundai’s smart EVs may hit the road in 2-3 years

Mumbai: South Korean carmaker Hyundai Motor is progressing “very fast” towards a mass-market electric vehicle it is planning for the Indian market, even as the government gives a further push to electric mobility by making it more affordable.

The “Smart EV” project has got a green signal from the headquarters and the first product may hit the market in the next two to three years, several people in the know said. The project has been approved and there is a dedicated electric vehicle architecture being mooted for the Indian market, they said.

The vehicle architecture is expected to be shared between Hyundai and affiliate Kia, and India will be the manufacturing hub for the vehicle for the emerging markets.


Hyundai Motor India managing director SS Kim said the company was working on the EV. “Normally it takes about two-three years; the work is on,” he said.


Kim spoke to ET recently. In the union budget on Friday, finance minister Nirmala Sitharaman suggested cutting the GST rate on electric cars to 5% from the current 12%, and proposed an income tax benefit on the interest paid on the loans taken to purchase EVs. She also proposed incentivising manufacturing of lithium ion battery.

The proposals are aimed at boosting the government’s initiatives to promote mass adoption of electric mobility, as part of efforts to reduce the country’s dependence on fossil fuel and air pollution in its cities.

In an interview to ET, Kim noted India’s initiatives and said the company’s strategy would be aligned based on its understanding of the government’s plans.

The company wants to develop a product and technology in line with the Indian government’s direction, he said. “Our company is moving very fast; the government has announced a very aggressive plan for implementation to the carmaker. We have already communicated with the R&D centre.”

Hyundai Motor has committed to bringing out 38 cleaner vehicle solutions including hybrids, electric and fuel cell vehicles globally. It is scheduled to launch the new Kona EV in the next few days in India.

“Already a lot of inputs are being gathered for an India-specific (mass-market) EV,” said a person in the know of the company's plans. “The investment in Ola will also play a key role in securing specific inputs for the requirement for the shared mobility platforms, where EV will become a viable sense.”

In March, Hyundai and Kia announced an agreement to invest $300 million in taxi aggregator Ola, with plans to collaborate on developing fleet and mobility solutions and building India-specific electric vehicles and infrastructure. Hyundai has also invested in car rental company Revv.

Rival Maruti Suzuki, meanwhile, will be coming out with its first locally manufactured EV in 2020, in tandem with Toyota Kirloskar. Tata Motors, the Mahindra-Ford combine and Renault too have plans for compact EV cars for India, and Hyundai does not want to lag behind.

There are several working groups at Hyundai India working on localisation solutions including battery as well as business models to cater to the likes of Ola and Revv. One of the key areas of focus for them is ensuring an accessible price.