3 Reasons Why Hyundai IONIQ CANNOT Come To India In 2017 (and why the Autocar story is bogus)
Autocar India recently reported that Hyundai is considering launching the IONIQ car in India in 2017. Instead of supporting his (or her) claim with logic, facts and figures, the author just vaguely says:
Quote:
With the Indian market gradually opening up to hybrid vehicles and the Government of India offering an incentive to manufacturers under the FAME scheme, Hyundai is considering the introduction of its Ioniq plug-in hybrid in India.
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I don't see the sales of REAL hybrids shooting through the sales charts. The rest of the story is just to reach the 300-word limit, which is done to show up in the search results.
The IONIQ is a large-scale, International project that targets the Toyota Prius from three different angles to gain a strategic advantage in the field of emission-free, cost-effective transportation. The project is bigger than anything Hyundai has ever taken up. Yes. It's bigger than Genesis.
So, here are three reasons why we won't be seeing the IONIQ range in India in 2017:
1. India Is Not Ready Yet
American and European markets incentivize both, the manufacturers and the buyers, for going hybrid or electric route. Our government is yet to come up with a concrete plan to promote widespread adoption of electric and hybrid vehicles. In fact, it doesn't look like we will have anything to get people excited about electric and hybrid cars in this financial year.
Hyundai is not a company that's in the habit of taking action and then keeping their fingers crossed. The company spends millions in carefully researching and studying the market needs and wants and the amount we're willing to spend on those before going forward. The company relies on facts and figures rather than intuitions.
Unless there is a plan in place to reward buyers and manufacturers willing to add electricity to the mix, it's hard to imagine it ever taking off in India.
Even if the government found a solution to motivate buyers to go electric/hybrid, the logistics alone would take months before they are finalised. In short, even if Hyundai today decided to make IONIQ available in India, it would take 6-8 months before it went on sale.
2. Pricing Won't Be Competitive
Hybrids are pricey. At least the REAL ones are. And these are not looked at as affordable modes of transportation because of the initial cost of acquisition. Prius was a direct import and didn't get much in the name of subsidies. The car sold in just enough numbers to be eligible for reserving a spot in the museum. The Toyota Camry hybrid is doing good for its class but still it's out of reach of most buyers.
On the electric side of things, the Mahindra Reva e2o is yet to become a viable alternative as an 'affordable mode of transportation'. The e2o is touted as a city car and so is the Tata Nano. Do the math and you'll find that the Nano is far more affordable in the 'cost per kilometre' department once you factor in the initial cost of the two cars and the interest you might incur during the loan tenure.
Hyundai's hybrid variants also come with some seriously advanced mechanicals. There's a 1.6-litre petrol engine with direct injection coupled with a 6-speed dual clutch transmission. That's some pretty fancy piece of tech right there. And fancy is always pricey.
Lithium-ion batteries; they don't come cheap. Even though the prices are following a downward path, they are still quite pricey. Forget Rs 10-20 lakh, even pricing it under Rs 30 lakh is going to be a tough task. It's not happening; at least not in 2017. Beyond Rs 30 lakh, they barely have a chance to make an impact in the industry, let alone bring huge profits to the company.
To turn IONIQ into a success story, Hyundai will have to 'Make In India' to keep the pricing competitive and that should add at least another two years before the car can be seen posing on showroom floors.
3. Fuel Prices Are Low
Even though the prices of petrol and diesel are rising in the recent months, they're still quite low. International crude oil prices are still far from the scary US $100/barrel.
So the IONIQ won't just have to deal with the other cars in its price range, it'll have to tackle the low petrol prices, which aren't really allowing buyers to take the fuel efficiency figures into account while choosing a car. Anything in the double digits is good enough for luxury car buyers and that, (almost) all cars can deliver. This is not a favourable environment for electric and hybrid cars.
4. BONUS REASON: It's Not Even Ready Yet
Developed countries are high on Hyundai's priority list. Autocar says that the Plug-in variant of the IONIQ is under
consideration for India launch in 2017 but even the US market will have to wait till next summer to get their hands on the plug-in IONIQ model.
The Electric is first in line for the launch and is coming to the US around September. Next is the Hybrid, which is launching this winter and the Plug-in is the last one to hit the showrooms in summer of 2017.
There is no way we could get the Plug-in IONIQ in 2017.
We may get Kia though.
Disclaimer: The story had first appeared on Gaadi.com