New Delhi: After buses and passenger cars, automobile giant Tata Motors might soon roll-out an electric variant of its small commercial vehicle.
In a conversation with IANS, Girish Wagh, President, Commercial Vehicle Business Unit of Tata Motors said the company has participated in 'FAME Phase I' scheme for electrification of buses.
Centre had introduced the 'Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India' (FAME India) scheme to promote the manufacturing of electric and hybrid vehicle technology.
"We have supplied more than 200 buses and cumulatively they have now covered more than seven and a half million kilometres, which has given us a very good experience.
"We are also keeping track of other segments to see what the customers are looking for, where it makes economic sense and therefore we are engaging with them, especially in the E-commerce sector to understand their needs," Wagh said.
According to Wagh, the economic attractiveness of electric vehicles has been on the rise with respect to the ICE engine due to falling battery prices and rising cost of ICE engine vehicles with respect to increase in regulations.
"We are exploring quite a few segments and actually after buses, small commercial vehicles do appear to have more chance of being electrified. Both from the perspective of the requirements of the customers and also being that economical sense," Wagh said.
Besides, he cited that the CV segment is getting the added push from an economic rebound which started towards the end of Q2FY21 and the Centre's push for infrastructure creation.
"I think the infrastructure push by the government has a very positive impact on the commercial vehicle industry. Secondly, the E-commerce sector has been doing pretty well, the rural economy is doing well, and gradually I see that urban consumption has also picked up as a result of all this.
"More than interest rate, the actual availability of credit has improved. This has also helped the industry."
On the rising ownership cost as well as fuel prices, he pointed out that so far the 'actual demand' has till now withstood this stress and the growth is expected to be maintained.
"We do have some headwinds. The pandemic is still not over, the commodity prices have risen, so off-late we have witnessed these headwinds.
"But as of now, the tailwinds in terms of overall economic recovery, seems to be picking up us ahead in the commercial vehicle industry," Wagh said.
Demand For e-Vehicles In India More Than Doubled In 3 Yrs
The adoption of electric vehicle by commuters is on the rise in the country as falling prices and government support is pushing up demand and increasing adoption of these green vehicles.
In a written reply to a question on e-vehicles in Lok Sabha on Tuesday, Minister of State for Heavy Industries Arjun Ram Meghwal said that number of registered electric vehicles as per e-vahan portal during the last three years has seen a consistent increase.
As against 69,012 units of electric vehicles sold in India during 2017-18, its numbers increased to 143,358 units in 2018-19 and again rising in 2019-20 to 167,041 units. The number included both two-wheelers, three wheelers and buses but two-wheeler sales have been upbeat.
The Minister informed the House that electric vehicles are being supported by the way of demand incentives under FAME India Scheme phase II to reduce the cost difference between the electric vehicles and ICE (Internal Combustion Engine) vehicles.
He said that government is also taking a number of other steps for promotion of electric vehicles in the country. GST on electric vehicles has been reduced from 12 per cent to 5 per cent; GST on chargers/ charging stations for electric vehicles has been reduced from 18 per cent to 5 per cent.
Moreover, Ministry of Power has allowed sale of electricity as 'service' for charging of electric vehicles. This would provide a huge incentive to attract investments into charging infrastructure, the Minister said.
The government has also granted exemption to the Battery Operated Transport Vehicles and Transport Vehicles running on Ethanol and Methanol fuels from the requirements of permit.
In the Budget of 2019-20, Finance Minister Nirmala Sitharaman announced provision of additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles.
In order to promote electric vehicles, the Government has notified for retro-fitment of hybrid electric system or electric kit to vehicles and has specified the type approval procedure of electric hybrid vehicles.
The Ministry of Road Transport & Highways has notified certain specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW.
Also, Ministry of Housing and Urban Affairs has made amendment in the Urban and Regional Development Plans Formulation and Implementation (URDPFI) guidelines to provide for electric vehicle charging stations in private and commercial buildings.