South Korean carmaker Hyundai Motor India is batting for lower taxation and incentives on electric cars for private use to drive electric vehicle sales in India.
SS Kim, MD & CEO, HMIL asserted that at present the environment in India is conducive for electric two- and three-wheelers. For four-wheelers though, the industry needs support from the government in the form of lower taxation or incentive support for private car owners.
Kim was speaking to the media on the sidelines of the inauguration of the company’s headquarters in Gurugram, Haryana.
“Current subsidies for four-wheelers are either available for fleet owners or low cost vehicles,” said Kim. He further highlighted the challenges of EV adoption, citing global experience, where charging infrastructure, high prices of EVs and range anxiety continue to be major challenges.
Government support with lower duties on CBUs or by some subsidy to private owners for a minimum two years will help create a certain meaningful demand and market for EVs in India. Meanwhile, “we can work upon the localisation of electric vehicles and charging infrastructure,” he said.
Hyundai Motor India is currently exploring options to introduce mass electric cars in India, as it aims for a 2% share of EVs in its overall sales by 2025.
Interestingly, Elon Musk, CEO, Tesla had also expressed concern on the high excise duty on CBUs in India, also terming India as the highest taxed country in the world. Musk had demanded a cut in taxation in order to build a factory in India.
Kim agreed that lower taxation will help bring EVs in India faster.
However, Tata Motors earlier this week said that it wants the government to be consistent on the current taxation and policies around EVs.