Kia bats for lower tax on electric vehicles to boost EV sales in India

Korean auto giant Kia is against higher EV tax in India as the carmaker plans to introduce more electric vehicles in the market in coming days. Kia has officially unveiled the Syros SUV on Thursday (December 19), which is underpinned by the same platform which is used for some of its latest electric cars. While Kia may launch the Syros in an EV version soon, the carmaker is keeping a close watch on the EV policy in India in coming days.

Kia's stand on lower tax on electric vehicles is seen as a reaction to recent media reports that the Centre may increase the Goods and Services Tax (GST) on used EVs from 12 per cent to 18 per cent. According to the carmaker, such a move will only deter potential buyers to move away. Gwanggu Lee, Managing Director and CEO at Kia India, said EV sales in India is unlikely to grow without tax incentives from the government.

Kia currently sells two electric vehicles in India. The EV6 was launched in 2022 and the EV9 was launched earlier this year in October. Both the EVs are manufactured in Kia's overseas facilities and brought to India through the import route restricting the number of units it can sell in a year. This results in higher price of both the EVs. While the EV6 comes at a price of nearly ₹61 lakh (ex-showroom) the much more premium three-row EV9 is offered at a whopping price of ₹1.30 crore (ex-showroom).

Also watch: Kia Syros SUV makes debut in India

Being imported models, both EVs attract significant taxation. According to Lee, high price of electric vehicles in still a big burden and hindrance to growth in EV sales in India. "Without any tax incentive from the government it is very difficult," Lee said on EV sales growth in future. While new electric vehicles attract a GST of just five per cent, EVs on resale pegs back a customer by 12 per cent GST.

Upcoming Kia electric vehicles expected in India

Kia is expected to drive in more electric vehicles in India soon. One of the segments Kia is likely to focus on will be the compact segment which will witness a surge of electric SUVs with the likes of Maruti Suzuki e Vitara, Hyundai Creta EV and Tata Harrier EV in January next year. Kia too may drive in the EV4, which is likely to be the fully-electric version of the Seltos SUV, as well as the EV3 which is based on the same platform used for the new Syros SUV.

Check out Upcoming EV Bikes in India.