“In India, it’s very dangerous to stick to one direction because it’s such a dynamic country,” Lee said in an interview. “The political environment here is constantly changing and OEMs must adapt quickly to new developments.”

Kia, a global automotive player with access to a wide range of technologies, is hedging its bets on several fronts, from electric vehicles (EVs) to hybrids and even compressed natural gas (CNG) models. Lee, however, is wary of the unpredictability of regulation, which complicates long-term investment strategies.

“As a businessman, it’s very difficult to know which way to go when the political winds are shifting,” he said. “Dynamic policy sounds great, but it can pose a huge risk for us. A more predictable direction would be more favorable.”

No wait for hybrid incentives

Although Kia is open to expanding its hybrid vehicle portfolio, the company is not counting on government incentives to make it viable. India currently does not offer tax breaks for hybrid vehicles, unlike electric vehicles, which benefit from reduced GST rates. Despite this, Lee remains pragmatic about the economics of hybrids.

“Even if we invest in hybrids, I don’t expect any incentives,” he said. “Hybrid technology is fundamentally based on the same platform as internal combustion engines (ICE). The real benefit lies in energy efficiency and affordability for the customer, rather than breaks.”

Electrification as a central pillar

Kia has already committed to launching two mass-market electric vehicles in India next year, including an electric version of the Syros compact SUV unveiled on Thursday, as part of its broader electrification strategy. However, Lee is cautious about the pace of adoption of electric vehicles, given the government’s evolving goals.

“At the start of this year, experts told me that electric vehicle penetration could reach 30%, but a few months later, expectations fell to 17%,” he said.

Kia’s electrification efforts will also be key to its adherence to Corporate Average Fuel Economy (CAFE) standards and stricter carbon emissions regulations.

The story of SUV-led growth

Kia India plans to increase its SUV market share to 10% next year from around 7%, as it gains additional volumes from the Syros SUV and the market sees a rebound with increased spending Hardeep Singh Brar, Head of Sales and Marketing, Kia,” said India.

Lee said the segment’s growth potential depends on rising incomes and an expanding middle class.

“The Indian automobile industry is growing along with economic development,” he said. “The key lies in the emergence of new middle-class households, which will support the growth of the automobile market.”

CNG and beyond

While electric and hybrid vehicles dominate the green mobility discourse, Kia is also exploring other options like CNG. However, Lee said its application may be limited to small SUVs and passenger cars. For the segments in which it operates, it may choose to focus on electric vehicles and self-charging hybrids.

“CNG is a potential route, but it does not meet the performance requirements of larger SUVs,” he said. “We strive to ensure no compromise in performance, especially for our SUV offerings.”

“Kia’s global presence gives us access to a wide range of technologies,” Lee said. “The key is timing: knowing when to adapt and introduce these technologies to the Indian market.”