Sohinder Gill, CEO, Hero Electric has said that India needs to adopt an electric transportation culture and that even after the majority share of the market it lacks volumes.
Gill said that the extensive popularity of two wheelers combined with an immediate need felt across the country to focus on sustainable energy resources seems to be the ideal scenario to nurture an electronic vehicle culture in the country, with special emphasis on electric two wheelers. The transport sector, considered to be amongst the largest energy consuming sectors, is largely dependent on liquid fossil fuels across the world. For instance, 93 per cent of all the fuel used in 2010 was allocated to the transport sector.
Talking about the stress on existing fuel reserves, he said, “As India has always primarily procured oil via imports, the existing volatile situation in the Middle East and a devalued rupee puts enormous pressure on our foreign reserves to import petroleum. A rise in EV culture will help to reduce the burden and slowly make a transition towards sustainable energy resources.”
He said that a potential electric two wheeler buyer has four apprehensions, which are – charging time, driving range, battery replacement costs and top speed and acceleration. All of which have been improved or solved with new advanced battery technology.
While talking about how the government could create demand for electric two wheelers in India he said, “This is one of the most essential aspects that the government should focus on. It is necessary to induce consumers to buy EVs as this is the only way manufacturers who are shutting shop will look to find a way back in. Cash incentives for OEMs, implementing subsidies as promised, centralized VAT rebate rather than individual states provision are some of the steps the government should take. EVs should be supported by fiscal concessions such as rebate in Sales Tax, Excise and Custom Duty, VAT etc. An analysis of the EV scenario shows that if the initial cost of capital is brought down by 30 per cent, a major surge towards electronic vehicles is predicted.”
The Hero Electric CEO also went on to add that awareness campaigns, coupled with incentives for the buyers and initial investment towards building an EV infrastructure will lay a strong foundation for EVs in this 1.2 billion strong market facing a severe energy resource crunch.
