Hyundai’s New EV to be PLI-compliant from Day One; Creta Electric Certification Expected Soon

Hyundai Motor India expects its upcoming locally manufactured electric vehicle to comply with the Production Linked Incentive (PLI) scheme from the start of production, while it hopes to secure certification for the Creta Electric shortly.

“The new EV will be PLI-compliant from day one,” Tarun Garg, Managing Director and CEO of Hyundai Motor India, told Autocar Professional. “The Creta EV was not PLI-compliant. We have applied for it, and we are hoping that it will become PLI-compliant very soon,” he added.

The automotive PLI scheme provides incentives on eligible sales of advanced automotive technology products manufactured in India. Companies and products must meet the investment, domestic value-addition and other conditions prescribed under the programme.

Garg said PLI eligibility would give Hyundai greater flexibility to support the Creta Electric and consider expanding its range. He did not, however, commit to passing the incentive benefit to customers through a reduction in prices.

“I am not saying that the benefit will be passed on to the customer. That has different connotations,” Garg said. “What I am saying is that it improves my leverage. It gives me confidence to push the product, do more and bring in other variants,” he added.

Creta Electric Volumes Rise
Hyundai’s application comes as Creta Electric sales begin to improve. According to Garg, monthly volumes increased to around 1,000 units in August from an earlier run rate of about 400-500 units.

The Creta Electric is manufactured at Hyundai’s Chennai plant. Its certification would allow Hyundai to claim incentives on eligible sales, subject to the model meeting the conditions of the scheme.

The company has not disclosed whether it plans to add variants or revise production following certification.