DECEMBER, 202519Suman Mishra, MD & CEO of Mahindra Last Mile Mobility Ltd., shared her views with the Society of Indian Automobile Manufacturers (SIAM) on the transformative impact of government policies, market acceptance, and industry innovation. She highlighted the essential steps needed to scale up and sustain India's electrification journey in the automotive sector. Following are the key insights.INDUSTRY OPINIONTWO AND THREE-WHEELER EV REVOLUTION IN INDIAIndia has become the pioneer in formulating the policy environment that would facilitate the elec-trification of the automobile industry and the last-mile transportation vehicles, particularly two- and three-wheelers. The government interven-tions have been quite effective in establishing a com-pletely enabling environment for the EVs and the lo-cal manufacturing industry.The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme was one such program that led this change and was a demand-side incentive program that helped in reducing the cost pressure on the customers. Understanding the fact that the initial cost of EVs is relatively higher than that of conventional vehicles, the government extended these incentives by including the waivers on road taxes as well as registration fees.Further, the Production Linked Incentive (PLI) schemes have been instrumental in boosting the domestic value addition. The PLI for Auto and Auto Components focused on the local manufacturing of EV parts and the PLI for Advanced Chemistry Cell (ACC) aimed at the domestic manufacturing of batteries which has been a constraint in the EV value chain. India has progressed in many areas of EV manufacturing but battery cell production has been comparatively slow, which makes the PLI ACC scheme critical for future domestic dependence.Furthermore, the support of the government in the establishment of the charging infrastructure ecosystem has been essential. Through encouraging the players to create a network of charging stations, the government is thus supporting the easier transition to the use of EVs. These policies have not only supported electrification initiatives but also gained a large market interest. Market Acceptance and Consumer SentimentFrom the consumer side, EVs particularly electric two and three-wheelers have been welcomed mainly because they provide better ride quality. Electric vehicles are more comfortable to ride, handle and easier to manoeuvre than traditional vehicles, thus, can be used by women, the elderly, and even the disabled. ICE vehicles have always been a challenge to these groups due to certain hurdles but EVs have eliminated them as they are easy to operate.The issue of higher initial costs is still there, but from the TCO point of view, consumers have a lot to gain from electrification. Less fuel consumption and fewer repairs to be made mean that EVs are cheaper to run in the long run. This value proposition along with enhanced driving experiences has made the EVs more attractive to the Indian consumers.Suman Mishra,MD & CEOSuman Mishra, MD & CEO, Mahindra Last Mile Mobility
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