ELECTRIC MOTION
AUTO INDUSTRY HONCHOS ON ELECTRIC VEHICLE ACCEPTANCE, UNLOCKING NEW CUSTOMER SEGMENTS, GOVERNMENT POLICIES TO PUSH EVs AND HOW INDIA CAN ACCELERATE THE TRANSITION TO CLEAN ENERGY VEHICLES
Q. HAS CUSTOMER ACCEPTANCE OF EVs IMPROVED?
BALBIR SINGH DHILLON
At Audi India, we have seen continued demand for the e-tron range. We believe that electric car acceptance in the country is happening much faster than anticipated. With the recent launch of the Audi Q8 e-tron and the Audi Q8 Sportback e-tron, we are taking the next step in our electrification journey. We have six electric cars in our portfolio, the widest EV offering in the industry.
VIKRAM PAWAH
BMW Group India remains dominant in the electric luxury segment thanks to its most diverse electric portfolio—BMW i7, BMW iX, BMW i4 and MINI SE. Till date, we have sold close to 1,000 battery electric vehicles (BEV), delivering 11 times more BEVs during H1 2023 than in H1 2022. The BMW iX is the best-selling BEV in the Indian luxury car segment. At present, it is the urban consumers that are driving a majority of the demand but prospects from emerging markets are firming up quickly in the medium to long term. We also have the best fast-charging infrastructure at the BMW Group Dealer Network in 35 cities, and it plays a vital role. We have opened it to customers of other electric car brands to promote e-mobility and address any range anxiety issues.
TARUN GARG
Hyundai introduced India’s first electric SUV, the KONA EV, in 2019 and subsequently launched IONIQ 5 this year. The response to both has been fantastic. We have adopted a top-down approach and introduced these two flagship products that have truly revolutionised the perception of EVs in India. Currently, HMI has a strong network of 119 EV dealerships in 54 cities.
SANTOSH IYER
Mercedes-Benz pioneered luxury BEVs in India with the EQC, which laid the foundation for BEV adoption. Top-end luxury products, complementary wall-box chargers, charging facilities at home, office and dealerships, long-range batteries with industry best warranty, all these factors have contributed to a faster adoption of BEVs for our customers. Mercedes-Benz India currently has two BEVs in the portfolio—the EQB and the EQS.
SHAILESH CHANDRA
With EVs available in the market at a price point of Rs 8 lakh on, people don’t see it as an expensive proposition anymore. The running-cost benefit of EVs is gradually dawning on customers. They are no longer sceptical about durability too, thanks to the eight-year warranty on the powertrain. The EV industry has grown from 100 a month to nearly 10,000 a month. They have also unlocked new customer segments; 25 per cent of Tiago.ev customers are women, which is twice the industry average.
Q. YOUR TAKE ON THE CURRENT GOVERNMENT’S POLICIES ON EVs.
BALBIR SINGH DHILLON
The government’s push on EVs is encouraging. It can work on strengthening the charging ecosystem on highways to further EV adoption in the country.
VIKRAM PAWAH
Government policies will play a deciding role in boosting adoption. Charging infrastructure and taxation benefits will drive faster adoption and market development. A strong public charging infrastructure will boost confidence among buyers.
TARUN GARG
HMI has always been an ardent supporter of the government’s vision and roadmap for electrification. We strongly believe that this transition must be an effort that is made in collaboration with all stakeholders. While there are state and central level policies to incentivise faster adoption of EVs, we believe this shift will also be driven on the back of products that build customer confidence for reliability, range, charging time and differentiated product USPs. This collaborative effort between government-led initiatives and strategic investments from OEMs will help accelerate the journey towards electrification.
SANTOSH IYER
Policies have been supportive about aiding the transition to e-mobility with a clear vision towards decarbonisation. But the current policies to support BEVs in terms of tax incentives should continue till the auto industry gains critical mass.
SHAILESH CHANDRA
Central and state government policies and subsidies have been great catalysts, helping accelerate the adoption of EVs. Further government support is crucial till India achieves an EV penetration level of 15-20 per cent.
Q. HOW SOON WILL EVs COMMAND 50 PER CENT OF YOUR BRAND’S SALES?
BALBIR SINGH DHILLON
As you know, Audi will be a fully electric car company by 2033. Audi India’s strategy is aligned with the global strategy. We have a strong product portfolio in the country and are expecting significant sales from EVs by 2033.
VIKRAM PAWAH
Between Jan.-Jun. 2023, the contribution of BEVs to total sales of BMW India was around 10 per cent. In the near term, we see the contribution going up to 25 per cent.
TARUN GARG
Estimates suggest that, by 2030, EVs will contribute nearly 30 per cent to total industry sales. At present, Hyundai India has the flagship IONIQ 5 and the KONA Electric. We have additionally planned an investment of Rs 20 000 crore over the next 10 years (2023-’32), part of which is dedicated to the introduction of electric vehicle models, accelerating the transition towards EVs and setting up a battery pack assembly unit along with 100 charging stations in Tamil Nadu. The state-of-the-art unit will have a capacity to assemble 178,000 pieces annually. All these efforts are aimed at adding a significant contribution from EVs to our overall volumes.
SANTOSH IYER
Our BEV roadmap for India is very aggressive as we will be launching multiple BEVs from our global portfolio. We forecast a five times increase in our BEV penetration in the next four years. One out of four Mercs sold in the next four years in India will be a luxury BEV.
SHAILESH CHANDRA
Tata Motors crossed the sales marker of 100,000 EVs recently. While it is a large number, EV penetration is still only at 2 per cent for the industry, while for Tata Motors, it’s 13-15 per cent in our overall portfolio. We see multiple factors, like elimination of range anxiety, more variety for consumers in the market, investments to enable localisation, and an increase in charging infrastructure that will help propel the Indian EV market. We expect the EV contribution to our portfolio to increase to 25 per cent in five years and reach 50 per cent by 2030.