Cheap cars

India’s dream of electric vehicles will end with love for cheap cars – Quartz India

india obsession with affordable small cars could delay the Narendra Modi’s government ambitious plan to sell only electric vehicles (EVs) in the country by 2030.

Weaning Indian automotive customers from cheap cars to much more expensive electric vehicles will be a daunting task unless the government subsidizes companies to help bring down prices. However, authorities have yet to do anything to make electric vehicles attractive to consumers, according to the Bloomberg New Energy Finance (BNEF) report on the long-term outlook for electric vehicles.

And this lack of affordability leads to a grim prospect. “The low average vehicle prices will prevent the adoption of electric vehicles for the next 10 years before adoption increases in the 2030s … We predict that electric vehicles will only represent 10% of the total vehicle fleet of tourism in India in 2040 “, indicates the report published on 06 July.

In any case, it was not just the BNEF that raised the question. The industry has also raised the need for government monetary support to popularize electric vehicles in a price sensitive market like India.

“No one would buy a Rs5 lakh car, which would incur an additional cost of Rs7 lakh (after electrification). Affordability is becoming a huge issue, ”Maruti Suzuki India President RC Bhargava said in April this year.

In addition, the government is lagging behind concrete EV plan did not help the segment.

Months after the announcement of the “VE only” package, the government did an about-face, inform parliament in January of this year such a plan did not exist at all. Then, in March, Minister of Energy RK Singh said the government would develop a policy that would have both a regulatory framework and technical standards on electric vehicles.

Many businesses are in standby mode due to this inconsistency.

For example, Korean automaker Hyundai Motors has yet to decide whether to manufacture electric vehicles in India or import and assemble them locally. “The first (locally manufactured) will result in cheaper vehicles in a price sensitive market, but the second (import) will be faster to implement,” said Rakesh Srivastava, director of sales and marketing. of Hyundai Motors India in Delhi. Auto show in February. “The other challenge in the Indian electric vehicle market is to find a balance between affordability and volume. “

The BNEF report even suggests creating strict quotas for electric vehicles like China has done. According to China’s new policy, automakers are assigned EV scores related to their production of various types of zero and low emission vehicles. From 2019, this score must be at least 10% of the company’s overall automotive production, reaching 12% in 2020.

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