Kia, the prominent South Korean automotive manufacturer, has expressed its opposition to the proposed increase in electric vehicle (EV) taxes in India, as the company intends to expand its electric vehicle offerings in the near future. On December 19, Kia officially launched the Syros SUV, which is built on the same platform utilized for several of its latest electric models. While there are plans to introduce an electric variant of the Syros soon, Kia is closely monitoring the evolving EV policy landscape in India.

The company's advocacy for lower taxes on electric vehicles appears to be a response to recent reports suggesting that the Indian government may raise the Goods and Services Tax (GST) on used EVs from 12% to 18%. Kia argues that such an increase would discourage potential buyers from considering electric vehicles. Gwanggu Lee, Managing Director and CEO of Kia India, emphasized that without government tax incentives, the growth of EV sales in India is unlikely.

Currently, Kia offers two electric vehicles in the Indian market. The EV6 was introduced in 2022, followed by the launch of the EV9 in October of this year. Both models are produced at Kia's international facilities and imported into India, which limits the number of units available for sale annually. This importation process contributes to the elevated pricing of both vehicles, with the EV6 priced at approximately ₹61 lakh (ex-showroom) and the more luxurious three-row EV9 commanding a substantial ₹1.30 crore (ex-showroom).

Also watch: Kia Syros SUV makes debut in India

Both electric vehicles, being imported models, are subject to substantial taxation. Lee notes that the high cost of electric vehicles remains a considerable obstacle to the growth of EV sales in India. "Without any tax incentives from the government, it is very challenging," Lee remarked regarding the future growth of EV sales. While newly purchased electric vehicles incur a Goods and Services Tax (GST) of only five percent, the resale of EVs imposes a GST of twelve percent on customers.

Upcoming Kia electric vehicles expected in India

Kia is anticipated to introduce a greater number of electric vehicles in India in the near future. The company is expected to concentrate on the compact segment, which is set to experience an influx of electric SUVs, including models such as the Maruti Suzuki e Vitara, Hyundai Creta EV, and Tata Harrier EV, scheduled for release in January of the upcoming year. Additionally, Kia may launch the EV4, expected to be the fully-electric variant of the Seltos SUV, along with the EV3, which is built on the same platform as the new Syros SUV.

Read Also: Maruti Suzuki WagonR Celebrates 25 Years: The SUV Champion's Secret to Success

HOW DID YOU LIKE THIS ARTICLE? CHOOSE YOUR EMOTICON!