Hyundai mulls India-specific electric car

Hyundai Motors India Limited (HMIL), one of the largest carmakers in the country, is mulling designing an electric car exclusively for the Indian market at a “very affordable price” and plans to roll out the vehicle in two-three years’ time.

Rolling out the 3 millionth car for exporting to the international market from its expansive plant here, 35 kms from Chennai, HMIL Managing Director and CEO S S Kim said the effects of the slowdown in the auto industry that began in the second half of 2019 would continue through the first half of 2020 and would stabilize only in the second half of the year.

The company's latest sedan Hyundai Aura, which has been rechristened 'Grand i10' for the Colombian market, was rolled out from the assembly line on Thursday morning.

He also said the HMIL would showcase second generation of its SUV Creta, which will sport a full model change at the Auto Expo in New Delhi in early February. Outlining the company’s plans for the 2020 calendar year, Kim said apart from the new version of Creta, HMIL is planning to launch three vehicles, including one hatchback series, in the country.

“Hyundai is in the process of designing an electric vehicle exclusively for the Indian market. The car will be available at an affordable price and is likely to be ready in two to three years’ time,” Kim said in response to a question by DH correspondent on when will HMIL launch “affordable” electric cars in India.

HMIL had launched ‘KONA’, a full electric vehicle last year, which is priced upwards of Rs 20 lakhs. The company has announced an investment of Rs 7,000 crore for establishing a plant to manufacture electric vehicles adjacent to its existing facility here.

On the slowdown in auto sector, Kim said 2019 was “very challenging” for the company and he expects the challenge to continue through the first half of 2020. “There is low customer sentiment and we are also in the process of transition to BS VI. Due to this, we have marginally increased the price. We expect same situation for next few months but confident that situation will improve in the second half,” he said.

Terming export of 3 million cars from the plant here to the international market as a “milestone” in HMIL’s history, Kim expressed the confidence that the company would increase the number of units that its exports in the year 2020. The company began its first export by sending a batch of 20 Santros to Nepal in 1999 and 21 years later, it exports vehicles to 88 countries across four continents, including Europe and Africa.

Kim said HMIL exported 1.81 lakh units to the international market in the year 2019 and would aim to send more than 1.90 lakh vehicles this year. To a question, he said the transition from BS IV to BS VI is smooth and the inventory of the older model is “quite manageable.”