When it comes to electric cars, the electric dream turns out to be a six-letter word that ends in f and ends in y, with antas in the middle, says Suveen Sinha.
Those who have been very successful, like your columnist, only read it once in a while.
One of the random readings showed a economist. com headline that struck a chord.
“The long term is in electric vehicles,” states a special report from April 14, 2023.
Other people in India don’t like the kind of media policy that The Economist applies to the country’s economy and politics, especially when both – economics and politics – are discussed at the same time. But this prediction about automobiles would have encouraged many hearts in India.
Moving from internal combustion engines (ICEs) to electric cars is the kind of romantic prospect that would appeal to a country that has everything from a shortage of landlines to an abundance of smartphones.
This could simply be described as the “four-letter word. . . “beginning with s” that Rahul Dravid hesitated to use when describing the bowling attack in India last year.
Some time ago, there was also a rumor that India would ban the registration of internal combustion engine cars within a few years, probably until the end of this decade.
They recorded their highest record number in March, more than 138,000, compared to the previous monthly record of 103,000 in May 2023.
Registrations in March are almost double those in February. This is also the month when e2Ws accounted for 9% of all two-wheelers.
In the case of scooters (electric motorcycles are rare), electric penetration is estimated to have reached 28% in March.
Although April was a drag, mainly due to the end of government subsidies, e2Ws have a solid use case.
Their costs are down, they’re overdue, there are already several models on the market and more are in the works, and electric two-wheelers are wonderful for short trips, such as online deliveries and other shorter trips.
Cars are driving more (as an anecdote, intercity roads have more in India with the improvement of the road network).
They require a larger, more expensive, and longer battery to charge. A number of highly sought-after electric cars still carry a bomb (although some Tata and MG models charge much less now).
But when it comes to electric cars, the electric dream turns out to be a six-letter word with an f, ending in y and with ants in the middle.
Electric cars, despite the five goods and services tax, account for just over 2% of all cars sold.
By comparison, hybrid cars are subject to a GST of 28 percent, but the tax brings the total tax incidence to 43 percent, unless it’s a small car.
ICE cars are subject to the same GST, but the tax brings the total up to 50 percent, depending on the length of the frame and engine.
And yet, some projections imply that India’s cumulative passenger car sales between FY23 and FY30 will amount to 42 million, of which around 6 million will be electric cars, leaving a giant number of the “other type. ” “. 2030, registration of ICE cars in India is expected to end).
The “other type” includes hybrids, which combine a battery with a combustion engine and gasoline, are less expensive than comparable electric cars and do not suffer from diversity considerations, while especially increasing overall fuel efficiency.
They’ve been booming in India, most notably because Toyota introduced its hybrid technology, made famous when Hollywood stars chose to drive the Prius at the turn of the century, in more affordable cars sold under its own logo, as well as through its spouse Maruti Suzuki, the country’s largest automaker.
Interestingly, a January report from HSBC Global Research addressed the origin of the argument in favor of electric vehicles. “Hybrids are much less polluting than electric vehicles,” the report says.
Using figures, percentages, emissions pools, and percentage of non-fossil energy production in India, the report concludes that it may take seven to ten years for emissions from electric and hybrid cars to converge.
Business experts who are optimistic about electric cars dismiss the report, arguing that hybrids are an old generation being promoted in India. But the same is true for almost every generation of automobiles if we assume they haven’t evolved since they first took the first step. printing about a century ago.
In addition, hybrids also have novelties elsewhere.
A recent Reuters report from Detroit indicates that automakers and OEMs are demanding from customers to strike a balance between all-combustion engines and all-electric (i. e. , hybrids) that is an enduring trend. U. S. Hybrid Vehicle SalesThey grew five times faster than electric companies. vehicle sales in February.
In fact, on a global scale, Toyota is booming, while Tesla, the iconic figure of electric cars, is facing tough times.
This causes Scene Unseen to follow its follow-up on economist. com.
“Why the Long Run Is Hybrid,” said a December 4, 2004, special report.
There is merit in reading the venerable old newspaper.
Disclaimer: These are Suveen Sinha’s reviews.
Presentation of the report: Rajesh Alva/Rediff. com