Hyundai may consider entering the commercial vehicle (CV) segment in India if the government looks at hydrogen as the fuel of the future.
Speaking to Moneycontrol, SS Kim, President, CEO and Managing Director of Hyundai Motor India said the present focus on diesel does not make the CV business a lucrative proposition for the company, given the limited shelf life of such vehicles in the future.
"Even though Hyundai has a CV division, I do not think we can be a part of the Indian CV market in the current market conditions. But if there are some disruptions in powertrain, a changeover like electrification or fuel cell technology then Hyundai can be a part of it. Many European countries are thinking about fuel cell solution for the heavy CV segment," Kim said.
Hyundai's rival Maruti Suzuki entered the CV space in September 2016 with the launch of Super Carry, a mini truck with a payload capacity of 740 kgs. From 5 percent in 2017, Super Carry managed to double its market share to 10 percent in the past financial year, with sales of little under 24,000 units.
Maruti Suzuki also exported another 2,200 units to some African countries. Other players in the mini-truck segment include market leader Tata Motors, Ashok Leyland, Mahindra & Mahindra and Piaggio.
Hyundai which saw market share climb to a lifetime best of close to 20 percent in July, announced the launch of India's first hydrogen-powered car Nexo in 2021.
"The Nexo is already on sale in Korea and will be launched in India in 2021. We will partner to build the required infrastructure for the Nexo in and around the Delhi-NCR area," Kim said at the Kona electric SUV launch.
A five-door, five-seater SUV, the Nexo comes powered by a 120 kW motor (163 ps power) with a fuel tank capacity of 163 litres of hydrogen.
Internationally, fuel-cell technology is hailed for its extended driving range which has attracted many CV projects. The Nexo, for instance, has a driving range of 800 km but as per Hyundai could rise to 1,000 km, against a petrol-powered car's range of 500-700 km.
The government has also shown positive intent towards the promotion of hydrogen-powered vehicles after the GST council slashed the rate to 12 percent from 28 percent. Hydrogen is a colourless and odourless gas and on combustion produces a colourless flame.
No other car company has spoken about developing or launching hydrogen-powered, also called fuel-cell cars, in India. Toyota has shown interest in fuel-cell cars but is presently focused on affordable electric and hybrid technologies, and Tata Motors showcased a fuel-cell-powered bus.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
