Niti Aayog’s Electric Two-Wheeler Target Is Perfect, Says Ather Energy
It’s a doable target, says Ather Energy’s Tarun Mehta.
Niti Aayog’s proposal to turn India’s motorbikes and scooters electric in the next six to eight years is “bang on” and “perfect”, according to Ather Energy Private Ltd.’s Co-Founder Tarun Mehta.
“It’s not a question if India is prepared or not, markets are going to take us there,” he told BloombergQuint, adding that battery prices have to come down. “With the kind of demand we are getting and the support we have right now, prices should come down to an estimated $100 per kilowatt hour in the next two to three years. That’s a very very doable target.”
Battery life of two-wheelers, according to Mehta, is far higher than what’s needed for personal use. “The primary lever for the industry now is going to be volumes.”
Agreed Jitendra V Adhia, president finance at Atul Auto Ltd. The government think tank’s target for two-wheelers is achievable if it comes prepared with appropriate plans and policies, Adhia told BloombergQuint. “The entire ecosystem setup should be completed before the implementation of the program.”
The think tank, chaired by Prime Minister Narendra Modi, is working with several ministries on a policy to push electric vehicles as India looks to pare reliance on fossil fuels to curb pollution and reduce oil imports.
Automakers’ lobby Society of Indian Automobile Manufacturers had earlier called the Niti Aayog’s proposal ambitious but impractical. “The suggestions should have a practical approach, rather than unrealistic expectation,” it had said.
Lack of infrastructure to build electric vehicles is also a stumbling block. “Automobile manufacturers are not fully equipped to shoulder the responsibility of building infrastructure facilities for electric three-wheelers,” Adhia said, adding that 70-75 percent three-wheeler buyers purchase vehicles for self-employment purposes.
The three-wheeler maker said its customers are dependent on retail finance. “None of the financiers, as of now, is ready with any kind of policies or financing schemes for electric vehicles,” he said, adding that it plays an important role when over 70 percent end-users are dependent on such vehicles for their bread and butter.
When the initial acquisition cost is higher, they need to look for higher quantum of loan and have to pay higher equated-monthly installments.Jitendra V Adhia, President Finance, Atul Auto Ltd.
Adhia said he is apprehensive if people would come forward to buy electric three-wheelers, unless there is a significant price benefit and comparability with conventional vehicles.
Watch the full interview here: