There are different views in Niti Aayog, Commerce Ministry and Finance Ministry. We need to have a policy whitepaper with a roadmap for the next 5 years.
In an exclusive interaction with ETAuto, Anil Yadav, Head of Region Asia, Business Unit Hybrid Electric Vehicle, Powertrain Division, Continental AG, talks about how shared mobility can yield volumes for EVs in India and the need to have a policy framework for the the supplier industry, carmakers and other stakeholders. He also called for financial incentives and lowering of import duties on components.
What are your views on the EV movement in India?
When we talk about e-mobility in India, the biggest challenge is volume and nobody would want to invest if there are no volumes. Therefore, if shared mobility players like Ola's and Uber's start getting into the EV space, then it will start fitting into the system.
For them, the TCO will reduce and this will provide us (India) the necessary volume, which is the need of the hour. Post that, urban logistics can be looked into as the next step to garner EV volumes. This is an area where one doesn't need a long range or top speeds and the route is also pretty much predictable.
How soon do you see the adoption happening for personal application?
For personal usage, I still see some time when individuals cars become pure EVs, that will be a gradual process. I see it becoming a mass market only after 2025 or even later, but not before that.
What regulatory hurdles do you feel is impacting the movement towards EVs?
First of all, there has to be a mix of financial incentives and soft legislations. In China, it's a mix of both. On behalf of the suppliers side, I would like to mention the need to reduce import duties on parts that go into the EVs. Why will a supplier come and invest if they see such a volume risk?
Is FAME India optimum in terms of financial incentive?
FAME India will start the momentum but for the supplier industry, it has to be a little bit more around it which would help us in risk management.
Do you agree to the projections made by the government and industry leaders that there will be 15% EV penetration by 2030?
That would happen, we don't doubt it. In case of personal mobility, range and cost are the two driving factors. If tomorrow, people will be offered a vehicle with a 400 km range, which can be charged at home, it will immediately become a mass market segment, but clearly, energy storage and charging are definitely the roadblock.
Have you seen interest of the OEMs in sourcing parts from you for the EVs?
We are in talks with Mahindra&Mahindra, Tata Motors and many others, besides startups engaged in the two-wheeler space.
Your views of widespread demand of an electric vehicle policy?
I would urge the government to first of all kill the anxiety. FAME India will come or not come. There are different views in Niti Aayog, Commerce Ministry and Finance Ministry. We need to have a policy whitepaper with a roadmap for the next 5 years.
This will then kill the anxiety. Ofcourse, some will like it some will not like it, but there will be no room for discussions.
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19 December 2018
20 December 2018