Need to formulate on how to generate electric vehicle volumes: Kenichi Ayukawa

Maruti Suzuki India MD and CEO said that the automotive industry should find ways on how to increase sales of electric vehicles across segments.

By: | Published: May 17, 2019 11:22 AM


India is slowly warming up to the idea of electric vehicles. However, owing to the lack of alternatives in the mass market segment, the demand is yet to pick up the pace. Maruti Suzuki India MD and CEO, Kenichi Ayukawa, the country's largest automobile manufacturer, which plans to introduce its first all-electric car in India by 2020, recently said in an event that sales of electric vehicles are more important than the subsidy offered in the localization of parts. He further added that automobile manufacturers in India should focus on generating demand across all segments.

Hybrid vehicles have plenty of common components with an electric vehicle. These include the battery, motor, an inverter to name a few. Ayukawa said that focusing on increasing volumes for the hybrid vehicles is further going to help in increasing the localization of these parts. He added that the largest factor which helps in localization is volumes, hence it is even more important than subsidy. The focus on increasing volumes should expand to each and every segment like commercial vehicles, passenger vehicles, two-wheelers and three-wheelers.

Talking about the commercial vehicle segment in general, to increase numbers, state transport corporations can be asked to add electric buses to their fleet. Government has launched the second phase of FAME-2 scheme in April this year. The scheme has an outlay of Rs 10,000 crore to encourage adoption of electric and hybrid vehicles, the government has made it mandatory for electric vehicle manufacturers to use locally made key auto components to avail subsidy benefits. However, EV manufacturers are against the move and have asked the government to consider doing away with the 50 per cent localisation condition for availing EV incentives.

Inputs- PTI

Do you know What is Automated Manual Transmission (AMT), Electronic Brakeforce Distribution (EBD), Anti-Lock Braking System, Power Steering? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Get the latest cars price and upcoming bikes price in India exclusively at Financial Express. Stay tuned for new cars and bikes reviews, follow us on twitter, Facebook and subscribe us on YouTube for latest auto news.

Next Stories
1Ather Energy starts fast charging network installation in Chennai: 50+ charging points by 2019 end
2World’s first ring catalyst turbo by Continental to lower emissions, fuel-consumption
32020 Audi A4 facelift breaks cover: Gets mild-hybrid system