2019-07-18 | Indore

Posted By | ShikshaNews

Electronic vehicles are the new sensation in the automobile market now. Electronic vehicles are considered to be the new solution to the global problems of depleting fuel resources and environmental pollution. In fact, the government of India itself is looking forward to eradicating every other kind of vehicle from Indian roads and decorate them with eco-friendly electronic vehicles only. It is estimated by the government to get rid off petrol and diesel-run vehicles by the next decade. 

However, currently, there are only a few thousand electronic vehicles run in the country. Whereas if we look at the global figures, on an average, 3% of the total vehicles on earth’s streets are electricity run.

Where the Indian government aims to achieve its dreams of running only electric vehicles on Indian roads by 2025, Volkswagen seems to have a different opinion about Indian’s choices regarding vehicles.

In an interview with CNBC-TV18, the director of Passenger Cars department of Volkswagen, Mr Steffen Knapp said that the company is not ready right now to cater India with its electronic vehicle.

He says that as per their understanding of the Indian automobile market, the customers are not yet ready for the electronic vehicles. The primary reason being that the people are looking for buying modern technology electronic vehicles at the cost similar to the vehicles having internal combustion engines (Petrol & Diesel-Powered Vehicles). The company expresses that it is unviable for them to serve Indian markets with better technology at the cost price of the conventional ones.

Hyundai, being the 2nd largest passenger car maker of India by sales volume, has recently launched its electronic powered car “Kona” in the Indian automobile market. It has been priced at a whopping price of Rs. 25.3 lakh. 

As per the opinion of Knapp, an Indian will not be willing to pay 2.5 million bucks for a car which has a better alternative and that too at cheaper prices. He believes that the Indian consumer base is focused on and is deliberately affected by pricing of products. 

The Indian Automobile industry is majorly dominated by vehicles based on the internal combustion engine. In less than 2 million bucks, you can get a luxury car. 

Hence, as per the understanding of Volkswagen, it is still a far future to equip Indian streets and transport system with an all-electric vehicle base. This gives them the idea that the company will still hold the position of a strong automobile company in the Indian Automobile Industry, without having the need to introduce their electronic vehicles.

If we closely understand their point, then yes, we Indians are indeed cost-effective consumers and get affected by a change in prices very easily. May it be lower-income grade individuals or may it be the high-class business class people, we all are price-sensitive buyers. However, are we ready to keep this stringent attitude at the cost of our environmental losses? 

Pollution is increasing at an ever-growing rate and India has already been ranked among the countries having the highest air pollution. It is high time that we need to understand our responsibility towards the environment. 

Government has already abolished GST(Indirect Tax on Purchase/Sale of Goods and Services) on purchase of Electronic vehicles. However, if it is still so that the electronic vehicles will cost higher than the petrol and diesel ones, then the government needs to understand the severity of the situation. Policies should be developed for promoting manufacturing and running of electronic vehicles in the country. Industries should be given subsidies, grants and tax rebates on the ground of developing eco-friendly and electric powered technologies to replace fossil fuel-based industries. Maybe this will help the eco-friendly technology to reach government easily.

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