Auto manufacturers asked for clear policies on future products, with some pushing for faster adoption of electric vehicles (EVs) and endorsing use of alternative fuel as the first option.

For instance, Kenichi Ayukawa, Managing Director, Maruti Suzuki India, was for keeping all options open including EVs, hybrids, CNG, methanol and ethanol. Pawan Goenka, MD of Mahindra & Mahindra, said the components industry should prepare for EVs in future and those who do not work on future capacity ‘do it at your own risk’.

“People who still believe that EV is still all talk and hence let’s not take it seriously… in my view nothing can be far. The volumes so far cannot be talked about, I admit that, but you have heard today that the Prime Minister might be announcing the new EV policy in the form of a new FAME scheme and the scheme is likely to be of five years and not of one or two years,” Goenka said.

Speaking at the annual session of Automotive Component Manufacturer Association of India (ACMA), he said such move by the highest levels in the government is sure going to make suppliers and customers serious. However, the India EV growth story would mostly be from the commercial applications and not in the customer application, he noted.

Goenka also said the regulatory environment will remain ‘very aggressive’ and it will not change – whether it is safety or emission – and at times, the changes will be expected within a time period the industry does not consider as adequate.

Similarly, Ayukawa said that policy stability and support for new technologies will help attain quick critical mass for the industry. However, the imperatives for India are different and hence to meet the energy security goals, the country requires a technology-neutral approach.

“Let us keep all options open — EVs, hybrids, CNG, methanol and ethanol. Adoption of any new technology needs adequate infrastructure to take off and attain critical mass,” he said.

Efforts are needed to set up a complete ecosystem from procurement of raw materials to charging infrastructure and recycling of the batteries for the EVs, Ayukawa said.

“We urge government’s support and attention to these important areas to help accelerate the adoption of new technologies. While OEMs and auto component manufacturers are committed to meeting the country’s energy security goals, we have a few requests for government too,” he added. Guenter Butschek, CEO and MD of Tata Motors, also underlined the need for support from the government with active policies to meet the challenges ahead.

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