India’s largest carmaker Maruti Suzuki said today that government incentives will be needed to make electric vehicles (EVs) affordable as the country moves towards the eco-friendly solution for mobility. The company, which plans to launch its first EV in India by 2020, also said it will conduct a study to find consumer insights to prepare for the journey.
Maruti Suzuki India (MSI) Chairman R C Bhargava said affordability is a major challenge that EVs will face and for them to be successful, focus has to be on manufacturing of batteries and other components within the country to bring down cost. He said “I think it will be required… My gut feeling is that yes, some kind of intervention would be required but I don’t know to what extent”.
Commenting on fulfiling India’s EV dream, he further stated “One of the challenges we have to face is how to electrify a small car and make it affordable. We have commissioned a study to understand what potential customers are thinking of electric cars…If the electric vehicle programme is to succeed it has to meet customer aspirations.”
Though localisation will play a crucial role in reducing costs and increasing affordability, Bharagava held that some amount of government intervention may be necessary to promote widespread use of electric vehicles among consumers. As electric vehicles are a new development for the Indian auto industry it would be difficult to say in details how much government support would be needed, he added. The company will conduct a study to understand more about consumer insights on electric vehicles, which will also help in estimating how much of government support will be needed, he said.
(With inputs from PTI & ET)
