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Are Indian automakers ditching EV in want of clear policy?
A comprehensive interaction with auto industry’s entry point reveals that Indian automakers are taking detour to immediate solutions such as BS-VI, Hybrid and CNG options.
The dream is electric. Pace is derelict. It’s all muddle wrapped under scintillating and imposing shield. This is how the often loquacious mission electric vehicle should appear if it faces “bare it all mirror” today.
The status is obviously anything but defined or clear despite a strong statement from Union Minister of Transport and Highways Nitin Gadkari two years ago created an urgency to adopt electric mobility.
Yet, where we sit today, we have at least more than one side to blame. The most important is the automakers themselves as they remain pushing their tails to multiple poles. Eventually, the policymakers don’t get single message but fragmented opinion.
Some have been pushing for hybrid, fuel cell, ethanol, CNG etc while others wanted a policy which is technology agonist. Though, the later looks justified too, as motive is not to implement a particular technology but to bring down pollution.
The other major hitch in the way is lack of a focused policy from the government especially in terms of incentives and infrastructure.
“The realization of electric vehicles in India is possible only after a policy. No one is ready to invest in a unstable market situation which keeps oscillating in multiple direction,” a senior industry leader told ETAuto on condition of anonymity.
Though, it got a thundering start with an aim to have 100 per cent electric fleet by 2030 but soon after entered a downward spiral to 30 per cent electric fleet by 2030. Experts believe that the event 30 per cent is a difficult task to achieve.
“Looking at the industry preparedness or available infrastructure, it looks difficult to achieve electrification of 30 percent of the entire fleet by 2030,” says Rashmi Urdhwareshe, Director, Automotive Research Association of India (ARAI). However, ARAI is working to provide enough testing and validation facility for the battery and EVs to meet the required target.
With the CAFÉ norms coming enforce from 2020, the industry has again shifted its gear strongly towards Hybrid.
A top official at leading testing, design and development support company AVL which gets involved with the vehicle manufacturer in very early stage felt that industry has moved its focus towards hybrid technology.
“Since the CAFÉ norm is coming by 2020 we see hybrid playing the key role and it will grow faster than EV, so we have got ourselves ready for this… In India, we have a big share which is prepared for hybrid. We expect 20 percent form Hybrid after 2020 and 10 percent from EV,” a senior executive at AVL told ETAuto during a auto technology exhibition in Pune.
He further added “Initially, we thought it will be EV then again we saw shift to Hybrid and after CAFE norms and no defined policy on EV,” he said.
Another executive from AVL observes that globally, 60 percent of its business is from Hybrid and 30 percent coming from pure EVs. While it see fuel cell cars to grow faster in the next 10-20 years in the global market.
ETAS Automotive India, a Robert Bosch Gmbh subsidiary involved in model-level development of vehicles and provider of innovative solution for the development of embedded system for auto industry also opined in favour of hybrid technology based on the demand coming from their vehicle maker clients.
“30 percent EV penetration is difficult in new cars but 30 per cent hybridization can easily be achieved by then,” Karanth Subrahmanya MR, managing director, ETAS Automotive told ETAuto.
Echoing the opinion of their counterpart, head of local units of American auto component maker BorgWarner sees Hybrid coming faster in the Indian market.
“The next movement in India is going to be Hybrid. People are working on this… After 10,000 electric vehicles (procured by ESSL), have you seen any new buzz,” reasons Sudhir Kumar Chawla, Managing Director BorgWarner Emissions Systems India.
He further added that 30 percent electric fleet by 2030 is an optimistic view. “Today in India everything is driven by legislative, so if legislation comes it will be possible,” he added.
European auto component maker SEG Automotive also expressed opinion in favour of market turning to hybrid in short terms especially to meet the CAFE norms.
“Adoption of 30 per cent electric fleet by 2030 looks difficult… we see a growth coming up in hybrid and the market will move from mild hybrid to strong hybrid in near future,” says Anil Kumar, managing director, SEG Automotive India.
Earlier this year in April, R C Bhargava, Chairman Maruti Suzuki said: “The hybrid technology is already resulting in significant improvements in fuel efficiency and is acceptable to customers. We will continue to promote such vehicles as a step towards electric mobility.” While he also announced that company will produce as much CNG vehicles as possible.
Currently, the carmaker produces six models in CNG variant namely Wagon R, Alto 800, Alto K10, Eeco, Celerio and Ertiga.
Embolding to the statement further, President of Suzuki Motors Corp Toshihiro Suzuki speaking at Vibhrant Gujarat Summit said that keeping the focus on CO2 reduction the company is exploring both hybrid and EV options for India.
“In order to reduce CO2 further, it is crucial to fully utilize existing technologies in addition to electric vehicles. In the Indian context, we firmly believe that hybrid and CNG Vehicles are the most effective solution, with fastest results. Especially, it should be pointed out that hybrid technologies are evolving at a rapid pace.”