Honda Cars India (HCIL) on Friday said it has started working on the strategy for electric vehicle (EV) in India. The company, however, said it will not launch electric car in the country in near future as the things are in primary stage.
“We have technology for electric vehicles with us and globally we are active in this segment. The company has just started working on strategy for India, though it is in a primary stage and we will not launch EV in near future in the country,” said Jnaneswar Sen, senior vice-president, marketing and sales, HCIL.
According to the company, in a country like India, there are several challenges to the EV segment, such as costs of the electric car, consumer adoption and battery-related issues, which need to be addressed first.
Sen said, “Challenges are there in EV segment in India. As it is expensive, (whether) consumers will accept it or not is a big question, therefore costs of such products must down. On the other hand, battery recharging time and recharging station are also a challenge. Infrastructure is not ready for EV. All these are concern areas in India.”
Globally, Honda is aiming for two-thirds of its vehicles to be electrified by 2030. The company’s upcoming electric cars will be especifically for the Chinese and European markets and likely to be launch in 2018. However for India launch, it will take some time.
The company has acquired about 380 acre in Gujarat earlier in this year. However, the company has not divulged much details about the deal.
Honda Cars has recorded a cumulative growth of over 22% in first half (April-September 2017) of FY18 selling 91,269 units in comparison to 74,855 units in the corresponding period last year. Riding on the strong festive demand, the company recorded domestic sales of 18,257 units with a growth of 21% in September 2017.
The company has a network of 348 facilities across 234 cities in the country. The dealership network has doubled in the last four years and the company has established a strong presence in tier II and tier III markets.
HCIL’s first manufacturing unit was set up in Greater Noida in 1997. The greenfield project is spread across 150 acre and has an annual production capacity of 120,000 units.
HCIL’s second plant in Tapukara is the first car manufacturing plant in the state of Rajasthan. This facility is spread over 450 acre and has an annual production capacity of 120,000 units. HCIL started production of cars from its Tapukara Plant from February 2014.