Hyundai Motor Europe’s marketing director said the company will introduce a fully electric entry-level car in Europe.
European market may soon receive Hyundai’s $20,000
The cost of electric vehicles continues to be one of the main critics. Even with subsidies, the majority of consumers cannot afford them.
Hyundai has acknowledged entering the contest to create an all-new compact electric vehicle for less than $20,000. But it seems that only European markets can access it.
Hyundai Motor Europe marketing director Andreas-Christoph Hofmann says the company is committed to eventually introducing a fully electric entry-level vehicle to the European market. Hofmann explicitly stated that the “battery-powered minicar” would take some time to evolve into a form that could go into production.
In the $20,000 price bracket, there are very few, if any, electric car options. A number of manufacturers have said they are targeting this price range, including Volkswagen with the ID Life initiative, which the German automaker says will cost less than $25,000.
Hoffman said the Hyundai i10, a small four-door sedan sold by the company in Europe, India and Latin America, will be replaced.
Hyundai hopes the new electric model will help it maintain its market position in Europe as restrictions force automakers to increasingly switch to electric cars.
Similar laws are weaker in North America, where there is less demand for compact cars, whether electric or not. Many manufacturers, like Honda with the Honda E, have chosen not to introduce small urban electric vehicles in the United States.
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Contract for $5.5 billion Hyundai plant in Georgia nears approval
The local economic development agency that helped persuade Hyundai Motor Group to build a $5.5 billion electric vehicle facility near Savannah cleared its parts of the deal on Tuesday. Details of the tax cuts and other incentives have not been released.
The Joint Development Authority approved the pact that represents four southeast Georgia counties that will lose hundreds of millions in taxes for the 8,100 jobs promised by Hyundai. Details of the incentive program will not be released until the state and Hyundai sign the agreement, which could happen this week.
The project was unveiled two months ago in Bryan County, where Hyundai aims to establish its first electric car manufacturing facility in the United States. The company wants to start building next year and produce 300,000 cars a year by 2025.
State officials said the incentive program would be similar to the $1.5 billion offered to Rivian Automotive, which plans to manufacture electric vehicles east of Atlanta.
An estimated $213 million in income tax credits will be a major win for Hyundai. This is based on Georgia’s credit for its largest development projects, which is $5,250 per job over five years. Georgia would instead pay Hyundai the personal income taxes it received from Hyundai employees if Hyundai did not owe so much state corporate income tax.
Hyundai will likely save hundreds of millions of dollars through sales tax exemptions on construction materials and equipment.
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