Even though government thinktank Niti Aayog is aiming for electric vehicles (EVs) to comprise at least 30 percent of new passenger vehicles sold by 2030, the country head of Europe’s largest carmaker believes that they are unlikely to capture a double-digit share. He feels an EV penetration of 3-5 percent is be achievable if the support ecosystem is right.
Venkatram Mamillapalle, Renault India Managing Director and CEO, is of the view that the ecosystem goes beyond setting up charging stations.
“An electric vehicle has a lot of safety requirements, the ecosystem for which is still not mature in India. I'm not just talking about (setting up) charging stations. It is (about) localisation of cells, indigenisation of batteries, etc. Firemen need to be trained in case the vehicle catches fire, and the insurance company needs to know how to assess the fire,” he said, while speaking exclusively to Moneycontrol.
Mamillapalle said that electric cars account for just 1 percent of the total passenger vehicles sold annually in India.
"It will take at least three decades for EVs to reach 99 percent (of total PVs sold). We can have about 3 to 5 percent penetration if the right ecosystem is there. It will take us at least till 2030 to reach that level,” he explained.
Mamillapalle stated that Renault’s EV rollout plans are very much on track. The Nissan-Renault alliance had announced that it will be investing Rs 5,300 crore ($600 million) for developing six new products for the Indian market. While four of them will be brand new C-segment SUVs, there will be two A-segment cars — one each by Renault and Nissan.
“EVs are in the plan, and we are following the government’s CAFE (fuel economy) requirements. While I cannot tell you what (kind of) and how many types of EVs I'm going to launch because it's confidential, I can confirm that India is a focal point for such products and we plan to get into it very strongly in future,” added Mamillapalle.
He, however, emphasised that internal combustion engine vehicles (ICEV) will continue to coexist with EVs, and added that globally the company has a strong presence in flex-fuel engine technology which it will get here if there’s a demand.
Renault, which currently sells the Kwid, Kiger, and Triber in India, will be launching other gasoline-powered models, especially in the SUV space. Last year it sold 87,000 units, and it is looking at flat growth this year.
“We are more or less towards the SUV segment even if you take the Kwid. It is a small SUV as that’s how it was built and designed. Then comes the Kiger, which is already running in the B segment as an SUV. We are now looking at B+ or C segment SUVs for the future. They will be designed, engineered, and manufactured in India, with 90 percent local components. They will be exported as well,” Mamillapalle added. He, however, didn’t confirm if the next-gen Duster will be relaunched in the Indian market.
Going forward, Renault India is also looking to enhance the export of its vehicles, from 25 percent of sales currently to 40 percent in the long term.
“Our ambition is that for any vehicle made here, India will ultimately become the production hub for exports for right hand drive markets such as South Africa. We will continue to work in that direction, whether it is EVs or ICEVs,” concluded Mamillapalle.
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