Pivoting to cleaner technology

Cleaner automotive technology is the new buzzword, and Hyundai Motor India will be at the forefront of electrification, a top company official told DH.

The Korean auto major recently launched their first electric vehicle – the Kona – in India. They are planning to introduce more models in the Indian market, even lower-priced variants.

“Hyundai will be at the forefront of electrification because it is eco-friendly,” Hyundai India MD and CEO SS Kim said recently.

“With products like the Kona, we want to contribute to changing the mindset of people about driving distance and concerns about charging stations. For those who have experienced the Kona, we hope they change their perspective on EVs.”

“That is perhaps the starting point, but it will eventually be the mass-market EV which is priced lower and has an optimum range. There will be more models in the coming years. We are in the process of developing the vehicles,” he added.

The Kona has been priced just under Rs 24 lakh (ex-showroom). The cars are currently imported as completely built units and that explains the high cost.

“We should introduce EVs that are priced lower. Once we introduce a mass-market EV, they can be taken up by fleet customers such as Ola and Uber. We are looking at 2022-23 for mass-market cars depending on the industry and infrastructure,” Kim said.

The NITI Aayog had proposed a ban on the sale of internal combustion engine (ICE) vehicles from 2030.

The Union Government has been pushing hard for electric vehicles but said that the switch to EVs will be natural.

Meanwhile, Hyundai achieved a major milestone in India when they hit 19.4% market share in July, their highest in the country. However, Kim was clear about the fact that the company will not go after sales volume.

“If we enter other segments, our market share might go up. But internally, the volume is not our target. Our business philosophy is to make the Indian customer happy and get them to trust and have confidence in the Hyundai brand,” said Kim.

“After that, if the customer is happy with the Hyundai brand, products and service, then volume and market share will be the by-products. We do not have a specific volume target. Maybe we will try and maintain what we have, but we do not target aggressive figures. Instead, we will strategise on how customers can trust our brand. If the customer wants more volume from Hyundai, we will accommodate their needs quickly,” added Kim.

On hitting higher sales. Kim said, “If we meet customer demand, if we take care of the customer and if the customer welcomes Hyundai products and service, I think we can maintain it.”

Kim also ruled out Hyundai getting into commercial vehicle space in India at the moment.

“Trucks and buses are a different market. Even though we have a commercial vehicle division internally, I don’t think Hyundai can be a part of the Indian commercial vehicle market in the current market condition. Maybe if the Indian industry moves towards fuel cell technology, Hyundai could be part of the commercial vehicle business,” he said.