NEW DELHI: Talking about ‘obstacles and challenges’ in the sale of electric cars, Korean carmaker Kia has said that govt should maintain incentives for the zero-emission vehicles or otherwise risk a slowdown in their adoption. The statement comes at a time when there are reports that the GST Council may hike the tax rates on luxury EVs priced upwards of Rs 40 lakh (against the present 5% rate).
“Electrification is a structured trend, and it is the right way… in global markets, we saw the demand for EVs move up after the pandemic. But now it has slowed down,” Kia India MD Gwanggu Lee told TOI after launching two new cars – the EV9 electric (for Rs 1.3 crore) and the new Carnival Limousine (Rs 63.9 lakh), both ex-showroom, Delhi.
Lee said there are impediments that are hampering the growth of EVs in India. These include an inadequate charging infrastructure. “… also, some customers talk about the cost of repairs of EVs, (and are concerned) about the price of the used car, range and safety. No one knows about the valuation of an EV battery after 5 or 10 years… I think it becomes difficult.”
He said incentives for EVs, including the premium ones, should be maintained to attract buyers. “In other countries, they give cash incentives to promote EVs. The Indian govt gives a tax incentive. They should continue to give incentives to promote electrification and maintain demand.” Unlike sibling Hyundai, Kia has been cautious in its EV strategy for India. While Hyundai has promised thousands of crores of investments in electrics with a series of vehicles lined up, Kia has been taking time to study the market before committing new investments.The company has currently been selling the EV6 electric, and has now added the luxury EV9.
Lee said that it will launch electric variants of some of its existing vehicles, though refusing to commit to development of all-new electric products for India.
