South Korean Makers Hyundai and Kia To Make EVs for India; Ola to Benefit

As we have already informed you, Hyundai had recently announced an investment of $300 million in the homegrown ride hailing startup Ola. Now there are reports coming in that the South Korean car giant along with its sister company Kia has decided to develop cost-effective electric cars and promote them with the help of Ola in India. The South Korean giant has also set aside a huge sum of Rs. 2,000 crores to develop new electric vehicles for the Indian market.

As you are already aware, Hyundai has launched their first electric vehicle – the Kona SUV – in Indian market. The prices for SUV start at Rs. 25.30 lakhs, ex-showroom Delhi. Kona is not only Hyundai’s first electric vehicle in the Indian market, rather it is the first all-electric SUV to be launched in the country. The vehicle has gone ahead and amassed more than 120 bookings within 10 days of its launch here. However, the new vehicle that the maker is developing for India will be priced around Rs. 10 lakhs and will likely be a compact SUV. Kia will also bring the same car to the market with a new look and some other tinkering with features and style.

Regarding the latest developments about Ola and electric cars, S.S. Kim, the managing director and CEO of Hyundai Motor India stated,

Hyundai Motor is transforming into a mobility solutions provider from and automobile company. The group is developing an electric vehicle platform for mass market in India. We develop cars for all and not just for ride hailing cab operator Ola where Hyundai has invested $300 million.

With the cab aggregator already using electric vehicles in cities like Pune, Hyderabad, Bangalore and Delhi, there are chances that the new electric cars from the South Korean maker will also be used by Ola in its fleet. Ola is planning on increasing the number of electric cars in its fleet in the coming years and the major investment by Hyundai and Kia in the company as well as the new cars they will launch will go a long way in the same. The government is also doing its part in achieving the ambitious goal of making India an all-electric vehicle country and is bringing out various subsidies and schemes for the same. Some of these measures include waiver of road tax and registration charges on electric cars, apart from charging a lower rate of GST on these vehicles. The government has also announced income tax benefits of up to Rs. 2.5 lakhs for individuals who seek loans to buy electric cars.