The first piece of the series reviewed the opportunity for India to become part of the rapidly growing EV market. The cost advantage of manufacturing in India combined with the built-in marketplace provides great advantages for foreign manufacturers. Today’s post focuses on the consumer and other considerations.
EVs in India also see some issues shared with some of the most densely crowded roads globally. EVs and hybrids get wonderful mileage in the stop-and-go crawling traffic in many major cities. In many cities (Djakarta, Hong Kong, Singapore, Tokyo, etc.) the traffic is so dense that people will stay in their vehicles (while running the electronics and air conditioning) longer than the mere distance to travel might imply. Driver assistance and in-car entertainment may be a large attraction compared to other continents. There are other local considerations unique to India (like languages and dialects for in-vehicle controls using speech-AI applications, quality of mapping, and complex local rules and signage).
Infrastructure in India is also a major concern for bringing BEVs to the marketspace. Mercedes, Volvo, Audi, and BMW are working towards charging networks even as sales are still very small (BMW is reported as selling only a few hundred luxury prices EVs in 2022). Government and manufacturers all see infrastructure challenges where today, any EV is likely to run on power generated by coal.
The role of hybrid vehicles (plugging in or with a full-drive train) is also challenged. Mercedes is supporting Tata Motors and Mahindra & Mahindra by pushing back on low tariffs and taxes on hybrid vehicles. As these firms have not invested or have existing platform products, this is clearly pushback against Toyota and Honda with their multi-generations of experience. Competitors take the position even though the Indian power grid has poor density of electric charging stations. The competitors will try to reduce overall marketplace entrants for as long as possible regardless of the practical considerations for EV/Hybrid buyers.
You can find the first post of the series here. Other posts on Dynamic India can be found at www.ekalore.com/india-business
“Rewarding hybrids doesn’t make any sense. Their time is over,” Matthias Luehrs, head of region overseas for Mercedes Benz, said as he spoke about the company’s focus on electrics in coming years.
“The phase of hybrids is over,” he said, adding that the internal combustion engine (ICE)battery combination vehicles were broadly working in European markets only because of the incentives being offered by various governments.
“And these incentives are also going.”
To read more pieces about Dynamic India go to www.ekalore.com/india-business
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