Monday, April 15, 2013

How to kill a Rising Bud !

While the buzz is on with petrol prices rising every day and LPG cylinders becoming insanely limited, India is on its mission to enroll in donkey number of "Save the Environment Organizations".
For all the Doha meets that are so often published in newspapers where does India really stand now?

India has the worst air pollution in the entire world, beating China, Pakistan, Nepal and Bangladesh, according to a study released during this year’s World Economic Forum in Davos. Of 132 countries whose environments were surveyed, India ranks dead last in the ‘Air (effects on human health)’ ranking


As per the latest survey, Air pollution is the fifth leading cause of death in India. Air pollution in India is reported to cause 527,700 deaths a year.







Electric cars do pose a solution to the pollution problem.
Studies show that in some cases, certain plug-in electric vehicles can produce up to 60 percent fewer emissions than a conventional car with an internal combustion engine 

So why is it that a million dollar car market numb to the idea of Electric cars?

Why is it that India seems so uninterested in adapting the solution? 

Lets dig this out!!


The existing market in India for electric cars comes at a high cost.

Recent example - Mahindra electric car  e20 launched this month costs 5.96 lacs.



The car has a limited driving range of 100 km. 2 door makes it a low capacity car with inconsistent interior.


My call : Why not buy a sedan if I have 6 lacs in hand?


The reason why Electric cars are so costly is the higher cost of their driving component "lithium batteries" which are imported. These batteries account for almost 60% of  car cost.


US and china have tax incentive programs for promoting the sales of electric cars. This perhaps is the major boost for their sales in these nations.


Indian government however does not yet promote a single such subsidy/incentive programme.


Mahindra & Mahindra was hoping the government would provide a rebate of Rs 150,000 to every buyer, including a 20 per cent rebate on the ex-factory price or Rs 100,000. However, the subsidy ended last year and the government hasn’t renewed it.


Apart from Indian Government playing such a spoil sport, their indeed are some more reasons.


Firstly , Cars play to be more of a  fashion statement in India.With almost no brand ambassadors and low cost advertising campaigns, the idea of using an electric car has failed to embark the Indian mentality.


Secondly, Electric cars can involve huge maintenance costs. A battery that might need replacement after 2-3 years will cost a grand of 1-2 lacs loosing more money than you ever saved using an electric car.


We need to focus both on technology and price front to mark a niche in this space.
Since technology improvements need government impetus , both the above cannot be achieved without govt support.

If only a government that is engaged in feku (akka Modi on twitter)  versus pappu (akka Rahul on twitter) fight can find more time and money to learn how not kill these rising buds!!






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