India has revved up its electric vehicle drive with the latest development in Delhi where the government has released draft norms for e-commerce and delivery players to include EVs in their fleet.
The industry received its first big boost in the form of the production-linked incentive scheme for Advanced Chemistry Cell Batteries. Since then several automakers have announced acquisitions and plans to set up manufacturing facilities.
Chief Minister Arvind Kejriwal yesterday also introduced Delhi’s first electric buses that will hit the streets soon.
The EV space looks all charged up, and according to Autocar India Editor Hormazd Sorabjee and Ola Electric’s board member and investor BVR Subbu, we are just getting started.
Sorabjee believes the tables have turned. “Ten years back, it was a gamble to bet on EVs; now it is a gamble to NOT have EVs. They are an insurance today,” he says in a chat with ET NOW’s Nikunj Dalmia and Nayantara Rai.
Especially with regulatory flip-flop in the country, Sorabjee makes a case for adopting EVs for “insurance”.
Both Sorabjee and BVR Subbu agree that India lags global peers in electric vehicle development and it still has a long way to go in making any significant progress in the space, especially in terms of production capabilities.
It may take a while for cab aggregators to adopt EVs in their fleet as per government norms, especially since the current offerings are not suitable and light vehicles, adds BVR Subbu.
In India so far, Tata Motors seems to have the lead in “what will be a marathon”, says Sorabjee, who believes cab aggregators will have to turn to Tata for their EV fleet.
In fact, he adds that in the next four to five years, Tata Motors and MG Motor will likely be the only two dominant players. Just a day ago, the automaker, whose shares have jumped over 110% over the past one year, said it wants to make EVs mainstream in the country. It is targetting 50,000 EV sales annually in FY23.
Besides a new Nexon EV with higher mileage, Tata Motors has lined up a new Tiago EV, along with electric versions of the Punch small SUV and Altroz hatchback in the under-Rs 10 lakh range. The company’s EVs are expected to offer a minimum range of 200 kms per full charge.
Regardless, major work is needed in the space, says BVR Subbu as he asserts that the government must focus on building capabilities for chemistry and material science if EVs have to kick off in a big way.
Massive production boost is absolutely critical to enhance the under-developed supply chain in the country, and that’s just one of the challenges afflicting the sector.
From legacy automakers finding it difficult to let go of margins from ICE engines and an almost non-existent EV charging infra to massive import requirement and limited inhouse capabilities, Indian automakers a tough road ahead.
