Mini Electric Cars Will Be Circulating In India, Cheap Prices

JAKARTA - South Korean automotive company Hyundai Motor Co. has reportedly started developing a small electric car (EV) for India as they focus on bringing more premium models to the country starting this year.

Hyundai India Director of Sales Marketing and Services, Tarun Garg, said various departments were working on issues such as charging ecosystem, sales network, manufacturing and the type of assembly process an automaker should have.

"We have to look at as many localizations as possible", Garg quoted Antara, Sunday, June 19.

While he did not comment on when the company would launch a small electric vehicle in India, Garg said the timing had to be right.

"So we can bring it at the right price too. The ecosystem has to be ready, we have to have enough replenishment", he said.

The small EV is part of Hyundai's broader plan to invest 40 billion rupees (512 million US dollars) to launch at least six electric vehicles in India by 2028.

It is also to provide a clean driving boost in a country with some of the most polluted cities in the world.

In India, EVs account for less than 1 percent of total car sales. However, the government is targeting 30 percent by 2030 as it looks to reduce pollution and fuel imports.

Until its small EV launches, Hyundai will launch premium models starting with this year's Ioniq 5 electric crossover and will gradually lower the price chain, Garg said.

The Ioniq 5, which has a range of about 480 km, starts at around $44,000 in the United States.

"When it's about cars with internal combustion engines (ICE), we have a bottom-up approach. In electric, we try a top-down approach", he said, adding that for mass-market EVs to succeed, there needed to be widespread charging, networking, and lower battery prices.

Hyundai 2019 launched its Kona EV in India, mainly to test the market, however, sales were low due to high prices and its public charging infrastructure was not very ready. Garg said the lessons from Kona will be incorporated into its future EV strategy in India.