Kia India doesn’t expect hybrid incentives, bets on flexible strategy: CEO Gwanggu Lee

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Subscribe to enjoy similar stories. Kia India, known for its sharp focus on sport utility vehicles (SUVs), is treading with flexibility in the dynamic Indian passenger vehicle market, where regulatory uncertainty and shifting consumer trends often leave automakers scrambling for direction. Gwanggu Lee, managing director and CEO of Kia India, emphasized the importance of agility over rigid strategies, pointing out that committing to a single course could be perilous.

“In India, it’s very dangerous if we just stick to one direction because it’s such a dynamic country," said Lee in an interview. “The policy environment here is constantly changing, and OEMs need to adapt swiftly to new developments." Kia, a global automotive player with access to a broad range of technologies, is hedging its bets on multiple fronts, from electric vehicles (EVs) to hybrids and even compressed natural gas (CNG) models. However, Lee is wary of regulatory unpredictability, which complicates long-term investment strategies.

“As a businessman, it’s very hard to know which direction to follow when the policy winds shift," he said. “Dynamic policy sounds great but can be a huge risk for us. A more predictable direction would be more favourable." While Kia is open to expanding its hybrid portfolio, the company isn’t banking on government incentives to make it viable.

India currently does not offer tax breaks for hybrid vehicles, unlike EVs, which enjoy reduced GST rates. Despite this, Lee remains pragmatic about the economics of hybrids. “Even if we invest in hybrids, I don’t expect incentives," he stated.