From the 1st of August, 2019, prices of the recently launched Hyundai Kona electric SUV are likely to get Rs. 1.5 Lakhs cheaper thanks to a big cut in the rate of GST chargeable for electric vehicles. The GST council headed by Union Finance Minister Nirmala Sitharaman met on Saturday (27th July 2019) and took a decision to cut GST from 12 % to 5 % on electric vehicles. Currently, the Hyundai Kona Electric SUV is priced at Rs. 25.3 lahkhs, and the cut in the rate of GST is expected to make it cheaper, and the new price is likely to be Rs. 23.8 lakhs.
Also, buyers opting to take a loan on an electric car can save on income tax by up to Rs. 2.5 lakhs as the union government has announced an tax rebate on the loan interest paid on purchase of electric vehicles. This would make the Kona quite attractive to those who want to buy a practical, technology and feature-loaded electric car mainly for city use.
Speaking on the GST rate cut on electric vehicles, SS Kim, MD & CEO, Hyundai Motor India Ltd. said,
Hyundai welcomes the GST council’s historic decision to reduce the GST on Electric Vehicles from 12% to 5% and on EV chargers from 18% to 5%. The tax benefit will help create an ecosystem that will encourage faster mass adoption of EVs in our society. With the launch of India’s first Fully Electric SUV – KONA Electric, Hyundai has already strengthened its commitment to bring ‘Clean Mobility’ Solutions to the Indian customers and the company is thankful to Government of India for fulfilling their promise as this strategic decision by GST council will further strengthen confidence of prospective buyers for electric mobility in future.
The Hyundai Kona is Hyundai India’s first electric car, and is assembled through the completely knocked down (CKD) kit route at the South Korean automaker’s Sriperumbudur factory. The SUV is powered by an electric motor that generates 135 Bhp of peak power and 395 Nm of peak torque right from idle. This high torque output of the motor gives the Kona very impressive acceleration, and the electric SUV can sprint from 0-100 Kmph in just 9.7 seconds, making it one of Hyundai’s fastest cars in India. A CVT automatic gearbox is standard, and it drives the front wheels of the Kona. The battery pack on the Kona EV has a claimed range of 452 kilometers per charge. In the real world, this should translate into at least 350 kilometers of range, which makes the SUV practical for city use. The battery will take about 6 hours to be recharged on a standard household socket while a fast charger can charge the battery to 80 % of its capacity in less than an hour.