Greaves Cotton Ltd., which holds a nearly 60% market share in the three-wheeler diesel engine business, has been looking at the viability of offering electric retrofitting kits for existing three-wheelers that run on its ICE-based powertrains, but is yet to take a final call on their launch.
The concept of retrofitting involves replacing a vehicle’s internal combustion engine with an electric powertrain. It is a method gaining traction in Europe to transform diesel trucks and buses into zero-emission vehicles. According to a report by JMK Research, retrofitting can extend the life of existing vehicles by up to seven years and help them avoid regulatory pressures like scrappage policies.
However, most of the established auto component manufacturers have not entered the retrofitting business in India, opting to take a wait-and-watch approach. The segment, therefore, is dominated by startups.
"We have looked at those kinds of options. Some of these are still in the proof of concept phase," said Nagesh Basavanhalli, non-executive vice-chairman of Greaves Cotton, during an interaction with Autocar Professional.
However, he expressed doubts about the commercial viability of the model, emphasizing the challenge of convincing vehicle owners to invest in such conversions.
"When you are asking an auto driver to put an extra x thousand rupees, he should see that incremental addition gives him that extra RoI (return on investments)," he explained. Without a proven business model, widespread adoption remains uncertain, he pointed out.
Greaves Cotton, a 163-year-old diversified engineering company, offers a wide range of offerings in technology agnostic powertrain solutions, including e-mobility and aftermarket services.