Electric vehicles: Not enough wattage to go around

The proposed allocation of ₹75 crore towards electric mobility in the Union Budget has received flak from analysts but an industry body welcomed it.

Rajeev Singh, Head of Automotive Sector, KPMG in India said it was a good start but not substantial. “The industry can only hope that this would boost consumer confidence. However, lack of infrastructure for electric vehicles in India will make it difficult for the segment to move fast.”

Kumar Kandaswami, Senior Director, Deloitte Touche Tohmatsu India said the nominal allocation was unlikely to impact demand and technology challenges would hinder its development into a more mainstream product. The subsidy alone may not influence the conversion to EVs, particularly the lower cost of owning petrol/diesel cars, he said.

On the other hand, the Director - Corporate Affairs, Society of Manufacturers of Electric Vehicles (SMEV), Sohinder Gill felt the allocation was in fact a lifesaver for the ailing companies that had invested in the environmentally friendly vehicles but were bleeding from lack of government support.

He said the National Electric Mobility Mission Plan (NEMMP) would positively impact the country’s health index through promotion of zero-pollution electric vehicles and less dependence on fossil fuel.

Gill said the biggest beneficiary would be companies manufacturing electric two-wheelers and small electric cars, as they have managed to survive through the difficult years and are still active in the market.