Kia India Navigates Tax Challenges Amidst EV Expansion

Kia India's Managing Director, Gwanggu Lee, highlights challenges posed by increased taxes on electric vehicles (EVs), potentially affecting the company's growth trajectory. Despite the tax hurdles, Kia India aims for a 17% sales increase. Its new SUV, Syros, expected to boost market share, will be delivered from February.

Gwanggu Lee, Managing Director of Kia India, expressed concerns on Thursday about the impact of increased taxes on electric vehicles. According to Lee, such fiscal changes could complicate the industry's electrification journey.

Kia India, which recently unveiled the SUV Syros, foresees a 17% sales growth next year, aiming to reach 3 lakh units, compared to this year's anticipated 2.55 lakh units. EV high prices remain a significant hurdle, Lee revealed in an interaction with PTI.

Currently, new EVs attract 5% GST. However, speculation is rife about potential reclassification of used EVs' tax rate from 12% to 18%, which could hinder sales. Kia India's premium models—EV6 and EV9—are already high-priced, and the company is preparing for deliveries of Syros in February, aiming to boost its market share to 20% in 2025.

(With inputs from agencies.)