How large is the potential for manufacturing EVs in India?
The Indian EV industry is in its nascent stage but the growth has been tremendous in the past two years. For any new category to gain momentum, it takes around two to three years, after which consolidation happens, considering the acceptance is favorable among target customers. Electric vehicles have been accepted very well in India with their key USPs of economy, ease and eco-friendliness and would be the future of transportation. The year-on-year growth of EVs has been around 45 percent and expected to grow at a similar rate this financial year.This segment has a tremendous potential to grow since the future of transportation lies with EVs. The global auto industry stands at cross-roads due to the slowdown in the global economy. This has caused pressure on oil reserves throughout the world in addition to the issues of global warming. The world should push for environment-friendly means of transportation for which environment-friendly EVs are the answer.
What were Hero Electric’s sales last year?
With consolidation last year, Hero Electric is the market leader in the electric two-wheeler category. In the last fiscal, the company sold 30,000 units and estimated projections for the current financial year are around 60,000 units.
Do you plan to expand capacity and dealerships?
Hero Electric as a founding member of the SMEV has been playing a leading role to promote electric drive in the country. As a business strategy, introduction of new technological solutions has been factored for the business and category growth. Finally, the business strategy has to be in sync with the action plan. There is always room to increase offerings, invest in new initiatives, projects and technology wherein Hero Electric has been continuously working so as to benefit the concerned stakeholders and set benchmarks for others to follow.Hero Electric has at present more than 280 dealerships across the country and plans to add another 150 during the current financial year. The company's current production capacity is geared up to meet the growing demand for electric two-wheelers in India.
What steps do you think can help accelerate the overall growth of the EV industry?
Government support is key to the growth of the EV industry and an answer to many of the challenges it faces. Some of the support which is required from the Central/ State governments to accelerate the overall growth of EV industry involves:l Tax rebates in the form of subsidies, excise duty waiver on EVs, and VAT exemption on electric vehicles.l Promotion and awareness of EVs as a clean and green mode of transportation.l Governmental support in establishing EV infrastructure in the form of a network of charging stations in both public and private places.