Going green costs big bucks

Going green costs big bucks. While the auto industry is investing millions of dollars in developing greener technologies, it hopes the government steps in and consumers grow a conscience, reports CNBC-TV18’s Swati Khandelwal and Shereen Bhan.

Automakers have been unveiling a steady stream of vehicles in various shades of green- diesels, biodiesels, bioethanol, E85, hybrids, electrics and hydrogen fuel cells across the globe. But going green is neither easy nor cheap. Companies are investing billions in green technologies and most are developing multiple technologies simultaneously to hedge their bets. The question though is who will pay for going green? Is the Indian consumer ready to shell out an extra Rs 10,000 to upgrade to Euro 4 from Euro 3, which is not currently mandatory.

“I do not think they won’t. They will opt for cheaper ways may be but not pay Rs 10,000,” said Hormazd Sorbajee, Editor, AutoCar.

Like in the west, going green will have to be incentivised.

“It is a phenomenon all over the world. 80% want to go green in Germany, but only 10% want to pay. So you have to make it attractive for consumers,” said Wilfried Aulbur, President, DaimlerChrysler India.

“There has been incentives for consumers who drive green all over the world. In UK, if you drive a Prius, or Reva, you pay no congestion fee,” said V Sumantran, Former ED, Tata Motors.

The government has to do more than just legislate. It has to use a carrot and stick approach to spur a green revolution. With fuel prices sky rocketing and climate change becoming a part of dinner conversations, consumers may not mind paying an extra buck. Changing mindsets is imperative to change consumer behaviour.