Hyundai Motor India seeks clarity on electrification of shared-mobility fleet
Says the intent is right, but manufacturers need time to prepare for the shift
South Korea’s Hyundai Motor that has a subsidiary in India on Tuesday said that the electrification of vehicles in India may be a step in the right direction, but there needs to be more clarification from the government.
The Centre had recently announced to electrify 40 per cent of the fleets of shared mobility apps such as Ola and Uber by 2026, in order to make the environment better.
Hyundai Motor India (HMIL) had recently announced a partnership with Ola as part of which some of its models like the Xcent and Grand i10 will become part of the aggregator’sfleet.
“We have heard no official decision till now. It (electrification) is a right action, but the timing could be too early right now. We need more clarity and time to prepare for it...not only Hyundai, but everyone (other manufacturers) too require time for the preparation,” Seon Seob Kim, Managing Director and Chief Executive Officer, HMIL, told reporters here.
Kona EV launch
Meanwhile, the company will be launching its Kona EV next month in India, which is being assembled at its factory in Chennai.
The company expects to sell around 100 vehicles in the first year, Kim said adding that since the economy of scale is not yet ready in India, production of the EVs will depend on the demand.
For the convenience of the Seon Seob Kim, MD & CEO, HMIL
buyers, Kim said the Kona will come with a home charger and there are charging infrastructure being set up at some of the dealers too.
But, ultimately it is the government that has to make it buyer-friendly in terms of charging infrastructure or subsidies.
Fuel cell push
For instance, the Korean government is giving 50 per cent subsidy on fuel cell EVs. For instance, the fuel cell EV that it sells costs $35,000 (original price $70,000) after the 50 per cent subsidy. He also said HMIL is not committed on the EV being developed for Ola or any other ride hailing app right now, but in future various projects under collaboration may occur.
The company recently invested $300 million in Ola and also announced to lease some of its cars in partnership with ALD Automotive India.
Globally, Hyundai has committed to bring out 38 cleaner vehicle solutions globally including hybrids, electric and fuel cell vehicles by 2030.
The company has already started selling fuel cell car 'Nexo' from late last year in Korea and have sold around 1,600 vehicles so far.
It plans to produce 7,00,000 fuel cell systems annually by 2030 including 5,00,000 units of fuel cell EVs by then.
The writer was in Korea on the invitation of Hyundai Motor India