Posted On : 24 Feb, 2020
The planning division of Hyundai Motors India is already conducting customer research to find out how much of the customers are willing to pay for their electric vehicles.
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Hyundai Motor India, the second-largest automobile maker said that it was beginning to restrict the plan at one place for its electric vehicles as the Government of India is set to raise the basic customs duties on completely built as well as the knockdown electric vehicles and their components by making its imports more expensive.
Mr. S.S Kim, Managing Director of Hyundai Motor India said that as an organization, they have understood the government’s direction of “Make in India”. They will look into localizing more as they are already localizing some plastic parts and some interior parts on Hyundai Kona. He also said that the company is looking at multiple partnerships to create a manufacturing ecosystem to ensure that electric vehicles become mainstream and more accessible.
When the company launches affordable expensive mass-market EVs, it plans to localize as much content material as it does for its conventional vehicles, which is over 90%. The company has been talking with potential suppliers to boom localized content. It is also contacting worldwide battery providers, which include LG Chem, to speak about collaboration for battery cell procurement for the local market.
The company's Indian arm, together with engineers at the Namyang R&D Centre in South Korea, has begun studies to gauge the most useful range and price factors for the product. The company has set a timeline of two to three years (24-36 months) to launch the mass-market electric vehicles and also aims to ready a concept of the vehicle for next Auto Expo 2022 at Greater Noida.
The rush for localization comes because the center appears to set up an EV production ecosystem in India that could compete with the best in the global. As a part of the Phased production concept, customs duty on imports of EV components will be raised in a step-wise way to inspire a gradual shift to local procurement.
Hyundai Motor India is currently selling the Hyundai Kona EV in India which is assembled from the knocked down kits that are imported from South Korea. This electric SUV has a premium price tag of Rs. 24 L which kept it outside the range of India car buyers.