Kia CEO Warns EV Tax Hike Could Hinder Growth

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Kia India’s CEO, Gwangju Lee, expressed concerns that increasing taxes on electric vehicles (EVs) could hinder their growth in India. Speaking at the launch of Kia’s new sub-4-meter compact SUV, Siroz, Lee emphasized the challenges of EV affordability. Bookings for the Siroz will begin on January 3, with deliveries starting February 27. The vehicle’s price is expected to be revealed in the third or fourth week of January.

Lee highlighted that the high prices of EVs are already a significant barrier for consumers. Speaking to PTI, he voiced concerns over the potential GST hike on EVs. Currently, new EVs are taxed at 5% GST, while discussions are underway to increase GST on used EVs from 12% to 18%.

“The high cost of EVs is a major issue. A tax hike will only make them more expensive, further discouraging buyers. The government should consider tax relief to promote EV adoption,” Lee stated.

At present, Kia India offers two EVs in the country—the EV6 and the EV9. The Kia EV6 starts at ₹60.96 lakh, while the EV9 is priced at ₹1.3 crore. Despite the challenges, Kia India is optimistic about its growth, targeting 2.55 lakh vehicle sales in 2024 and projecting 3 lakh units annually by 2025.

Kia India’s Vice President of Marketing and Sales, Hardeep Singh Brar, expressed high hopes for the new Siroz SUV. “With the Siroz, we aim to expand our presence in the compact and midsize SUV segments. We plan to increase our market share in this category from 15% to 20%,” he said.

By consistently introducing new models, Kia India is strengthening its foothold in the Indian automotive market.