Should Your Next Car or Bike Be Electric? Not Yet, Say Automakers

Not all automakers in India think that the government’s plan of an all-electric fleet by 2030 would be achievable.

India’s policy on electric vehicles seems to be going around in circles. And that’s left automakers in a tizzy. The question: To invest in making electric cars and bikes or not? And the big question for car and bike buyers – should the next car or bike they buy be an electric one, or a petrol/diesel model?

At the recently concluded Auto Expo 2018 in New Delhi, we spoke with a number of automakers about whether they think India’s ambitious target of an all-electric fleet of vehicles by 2030 is achievable or not. And we got mixed responses, from the very pessimistic to the ‘conditionally’ optimistic.

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However, Nitin Gadkari, Union Minister for Road Transport and Highways, has put a further spanner in the works, just as automakers were shifting focus to electric vehicles.

At a function organised by Niti Aayog to install electric chargers and showcase electric vehicles, the minister said there is no need for an electric vehicles policy for India. This statement from Gadkari comes barely a month after he had said that the policy was almost ready.

Amitabh Kant, chief executive of Niti Aayog, clarified that Gadkari meant that India only needs action plans and not a policy, because technology was constantly changing.

So where does that leave electric vehicle plans? At the Auto Expo, we asked a number of automakers about whether they thought India’s deadline for an all-electric fleet by 2030 was too ambitious or not.

Soumitra Bhattacharya, President of Bosch Group India, was not too optimistic. He said that in a best-case scenario, India could have about 18 percent of its fleet electrified, while in a worst-case scenario it would be about 10 percent. Bosch showcased an electric-powered car just ahead of the Auto Expo.

The technologies for four-wheelers and for two-wheelers is very different. For cars the government will need to set up charging stations. For two-wheelers, we think a swapping facility would be much better, where batteries can be swapped out in minutes, instead of waiting for them to charge.

Naveen Munjal, Managing Director, Hero Electric

Hero Electric showcased a range of electric scooters from those that don’t require registration to high-powered ones that can do over 70 km on a single charge and touch speeds of up to 60 kmph. It expects its sales to double every year as people begin to adopt electric two-wheelers.

Honda Cars India also showed a couple of its futuristic electric cars, like the Sports EV Concept. However, Honda Cars India President and CEO Yoichiro Ueno wasn’t very optimistic about India’s electric car plan.

The government needs to come up with a strategy for electric vehicles. India needs to set up charging infrastructure. We need to know what kind of electric vehicles the government wants to introduce before we bring our cars. Also the taxes have to be looked at, because the technology is expensive. 

Yoichiro Ueno, President and CEO, Honda Cars India

Ueno thinks that by 2030, it won’t be possible for India to go fully electric as the infrastructure is not in place. “Only some part of the goal may be achieved,” he said.

Mahindra, however, thinks it would be good for the market if more players entered the electric car space. He said Mahindra started investing in electric cars even before the government’s announcement. If the right incentives are in place, Mahindra thinks it is possible for a shift to electric cars.

The company showcased futuristic electric concepts like the Atom and Udo personal mobility vehicle at the Auto Expo, along with a refreshed Mahindra e2O, Verito electric and E-KUV100, besides a Treo three-wheeler.

Tata Motors too is already on the electric bandwagon. It showcased an electric Racemo sports car, a Tata Tiago electric and a Tata Tigor electric besides its 45X and H5X concepts, which could be fitted with electric powertrains when needed.

“We will see what the demand is like,” said Pratap Bose, Head of Design, Tata Motors.

Maruti will be driving in its first electric car by 2020, and being the largest carmaker by market share, it will likely drive the shift to electric cars. But before it does that, it plans to put its own charging infrastructure in place.

So the question is, should you buy an electric car next? Well, it is still early days. Only by 2022 will the industry be ready with a sizeable number of electric cars on the road.

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