Hyundai is planning to bring a new compact-SUV into the Indian market with an electric powertrain to further expand its EV portfolio in the country. The brand will be investing a large sum of money in the Indian market for the expansion of green mobility as Hyundai plans to launch a number of electric vehicles in the market.
Electric Mobility Future
The future of electric mobility depends on affordable electric vehicles and the Korean brand plans to do the same. For the Indian market, Hyundai is likely to invest close to INR 3,200 Crore over four years to ensure an affordable compact SUV and the development of other EVs in various segments. The compact SUV is likely to be based on an existing SUV such as the Creta which is a popular car in the Indian market. The route could be similar to Mercedes-Benz’s EQ which uses existing platforms for its 100% electric SUVs. This might help Hyundai keep the development cost low benefitting the customers.
Another way of keeping the costs low is localisation. The EVs could be made locally in the Indian market which also attracts benefits from the Government of India’s FAME scheme that is in line with the Faster Adoption of Hybrid and Electric Vehicles. The Kona Electric in the Indian market captures 17% of the EV segment and the price is competitive due to its import via the CKD route and small amounts of localisation. The brand may opt to produce the new electric SUV which will help increase the market share as more people will be able to buy the affordable SUV.
The new compact SUV could be the size of the Hyundai Creta and will position itself below the Kona Electric and is likely to come with a powerful electric motor, fast charging capabilities and a long-range of around 300 km per charge to compete with the hot-seller in the EV segment the Tata Nexon EV.