Despite government’s Aggressive Intentions, India’s largest Auto Maker skeptical of Fast EV Growth

Advantages of Electric Vehicles

India’s largest automaker with more than 50% of car market share is skeptical of the early and fast growth of the Electric Vehicle market. The Indian government wants to accelerate the transition from ICE cars to Electric cars given the multifold advantages for the country namely:

a) Improved energy security as India imports more than 85% of its oil requirements

b) Better fiscal health as massive oil imports bill leads to a higher fiscal deficit

c) Better quality of lives as air pollution has become a huge and life-threatening condition in many Indian cities

d) More jobs and investment as the new industry can catalyze growth and change.

The Indian government is already giving a wide variety of incentives and subsidies to boost the electrification of transportation in the country. However, most of the subsidies are being given for two- and three-wheelers and non-private public transportation services such as buses and cabs. Unlike the western countries which have given massive subsidies for private electric cars, India is giving only a tax benefit for electric car buyers and tax incentives without any cash incentive. The problem of charging infrastructure is also a serious issue as it is being now rolled out across the country at varying pace.

Also, read the list Of Best Electric Cars Running In India

Maruti Suzuki has been less than enthusiastic about the entire EV phenomenon and does not see any major change happening in the next 2-4 years as the affordability issue is a major concern. The company has made some moves like tying up with Toyota for engines and a battery plant plus planning a model or two in the next year but nothing like the normal aggressiveness seen by India’s top carmaker. The company’s lethargy could also stem from the fact that it has the most to lose from this transition. The company could lose massively if other competitors move ahead in the EV race. Already the marginal players like Tatas, Mahindras as well as MG Motors are planning a big bang in the EV space with new models and large investments.