Incentives for EVs must continue for better adoption in India: Kia

Korean carmaker Kia has said that the government should continue with incentives for the zero-emission vehicles or otherwise risk a slowdown in their adoption, reported TOI.

The statement comes amid reports that the GST Council may hike the tax rates on luxury EVs priced upwards of Rs 40 lakh (against the present 5 per cent rate).

"Electrification is a structured trend, and it is the right way... in global markets, we saw the demand for EVs move up after the pandemic. But now it has slowed down," Kia India MD Gwanggu Lee told TOI after launching two new cars - the EV9 electric (for Rs 1.3 crore) and the new Carnival Limousine (Rs 63.9 lakh), both ex-showroom, Delhi.



Lee said that the challenges hampering the growth of EVs in India include an inadequate charging infrastructure. "... also, some customers talk about the cost of repairs of EVs, (and are concerned) about the price of the used car, range and safety. No one knows about the valuation of an EV battery after 5 or 10 years... I think it will become difficult,” added Lee.

He said that the incentives for EVs, including the premium segment must have incentives to attract buyers. "In other countries, they give cash incentives to promote EVs. The Indian govt gives a tax incentive. They should continue to give incentives to promote electrification and maintain demand."


Unlike sibling company Hyundai, Kia has been careful in its EV strategy for India. Hyundai has promised thousands of crores of investments in electrics with a series of vehicles lined up. Kia, on the other hand has been taking time to study the market before committing new investments.The company has currently been selling the EV6 electric, and has now added the luxury EV9.

Lee said that it will launch electric variants of some of its existing vehicles. He refused to commit to development of all-new electric products for India.