Automobile industry not a ‘chai ka stall’, EV transition have to be executed in phases, says Rajiv Bajaj of Bajaj Auto
In his most powerful remarks but against the government’s plan to push India’s car industry to undertake electronic vehicles (EVs), Rajiv Bajaj, MD of Bajaj Auto, stated the transition to EVs has to be in a phased way and that an entire ban on inner combustion engines isn’t always an answer.
Appreciating the government’s push in the EV space, Bajaj stated this ought to assist generate purchaser interest and call for EVs at a time when the automobile enterprise is present process a difficult segment.
Here are the edited excerpts of his interview with CNBC-TV18:
Q: How do you see most of these incentives which can be aimed closer to selling electric cars? How do you spot those provisions?
A: Personably, in precept, my stand has constantly been that I am no longer in favor of incentives because I feel that any era or any product must be sustainable. However, I take the factor that during some instances one need some guide for liftoff, I remember the fact that. However, I am always careful due to the fact I even have learned to revel in that one ought to not be too easily seduced via these incentives because incentives that come today can pass just as effortlessly tomorrow. So, from the point of view of the producer or the entrepreneur, I would say you have to nonetheless be firmly fixated on turning in a sustainable answer. Having stated that in phrases of city pollutants, electric powered automobiles are more and more turning into an attractive option and it’s an amazing concept in that feel for the government to enable anyone to transport in that direction.
Q: To what volume do you experience that removal of import responsibility on lithium‐ion batteries, exemption of certain EV components from custom responsibility, 1. Five lakh tax reduction on EV loans and discount in GST lessen the fee of a two-wheeler electric car?
A: These are very significant reductions. I have no longer performed the exact math however if you compare just GST 28 as opposed to five percent for IC engines and EVs respectively, I mean 23 percent reduction is a whopping sum. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) benefit of Rs 10,000 according to know is a large amount of cash and some of the reductions in the import responsibilities can even help. So, I might say the government has actually placed its pleasant foot forward in supplying a very tremendous package to individuals who are inquisitive about placing out accurate pleasant electric powered cars due to the fact we should make the point that these are all advantages which might be available, specifically the FAME gain, to people who are going to make electric powered cars that meet sure first-class requirements, sure minimal requirements in terms of diverse performance parameters, which is a great element due to the fact I do no longer think we want our u . S. A. And our roads to become a dumping ground for cheap imports.
and we all recognise that we are also involved with what is going to take place when the following step of BS-VI comes into place and prices move up even similarly due to the fact we have seen best 6 months again when insurance cost went up or these days when anti-lock braking gadget (ABS), blended braking system (CBS) came into play what befell. So, I assume very risky, very unsure, very difficult times in which one has to simply stay the path and wait it out.