Government policy is key to raising India's hybrid vehicle penetration: Analyst

You see in India it’s just about 2.4% EV penetration. We did about this 100,000 units last year and there was just a one player Tata Motors having 70% market share. And if you look in Indian market, the largest player still doesn’t have the EV model for Indian market. So, so I mean the Tesla with its E vehicle policy, obviously government would have collaborated with them to understand the requirements and that policy could hit them and bring Tesla to the India. So the policy states that if the vehicle above $35,000 can be imported lower duty rate of 15% versus the normal of 7200% for Indian market and they have to commit an investment at least of $450,000,000. So with the plan coming three years time. So this could actually bring the player, large player to Indian market and with the excitement of the models, the EV market, India will get a lot of boost. So obviously the challenges remain in area of EV ecosystem. So which is a global challenge charging infra cost of ownership, it’s still at least a 20% more expensive than ICE vehicle. So those challenges continue. But the obviously the transition will keep on supporting higher EV penetration in India. So we expect this 4050% growth for next year. So that would mean 3% penetration by next year. So Tesla say assume comes by end of year, there are Maruti Mahindra which are talking about new model launches. So all this could support the EV penetration in India. So obviously gradual, but there would be a lot of excitement of Tesla comes to India. Can I ask you and, and putting Tesla to the, to the side right now, because they’re, they’re a pureplay that we’re, we’re talking be VS there in terms of your, your thoughts and, you know, the, the analysis that you’ve done. Is it realistic to expect that that a VS are going to be, you know, predominant in India, considering where we are right now on the infrastructure and you know, just the, the demographic challenges and everything else is, is hybrid realistically the way forward more so for India at, at the current stage of development that we’re seeing? You’re right, it’s very gradual, I mean just 2% now. So it would be safe in the range of 20% by 2030. So India will be still a much behind say likes of Europe and China market. But for hybrids, I think the there could be a good demand. The challenge for hybrids are more on the taxation side. They don’t enjoy a low tax rate like for EV is there, but the government is talking with that also to reduce. So if that happens support comes from government for the hybrids then definitely there could be good market and there are like a lot of Japanese play in Indian market which have a good presence in the hybrid side. So they could come and there should be definitely increase hybrid as well. So it’s that’s also 3% penetration currently which is on strong hybrid side. We’ll definitely see increase, but yeah, government policy there would be key to in terms of a penetration increasing for the hyperage in India.