At a time when the growth of two-wheeler industry has come down to a mere 2% and double-digit growth seems to be far, electric vehicles (EVs) are estimated to grow by 40-45% in 2009-10.
According to the recently formed Society of Manufacturers of Electric Vehicles (Smev), sales of total electric vehicles in the country (97-98% of which are two-wheelers) is estimated to jump by 45% in the current financial year at 1,60,000 units as compared to 1,10,000 units sold in 2008-09.
?Though electric two-wheelers constitute around 1.5% of the total two-wheeler sales in the country, there is huge growth potential in the segment because of extremely low running costs vis-?-vis other two-wheelers and a pollution-free drive,? says Naveen Munjal, president, Smev.
As per industry estimates, assuming a 60 km drive every day, an EV user can end up saving Rs 12,000 a year, including the replacement cost of the batteries.
However, Munjal feels that all this growth will come only when there is support from the Centre to ensure that the Indian electric vehicle industry is equally competitive as compared to other countries, mainly China.
?We are seeking government?s support to reverse the inverted duty structure wherein the import of critical component like batteries and motors attract a high duty while the completely build products can be imported at no custom duty,? says Munjal, adding that even the regulatory norms should be made stringent in the country so that low quality vehicles are restricted from being sold here.
According to Munjal, while international oil prices also play an important role in determining the demand of electric vehicles in India, there need to be support from the Centre to encourage research and development.
?Government sponsored research is absolutely critical to the growth and development of electric two-wheeler industry in India,? he says adding that the society is also talking to various ministries as well as state governments to ensure that all states across the country should give some subsidy to EVs to boost demand.
According to the Society of Indian Automobile Manufacturers, total two-wheeler sales in India went up by 2.6% in 2008-09 at 74,37,670 units as compared to 72,49,278 units in the preceding financial year.