New Delhi | Jagran Technology Desk: In today’s episode of Jagran New Media’s #NayaBharat, Jagran HiTech editor Siddhartha Sharma is joined by Global Business CEO of Hero Electric and Director General of the Society of Manufacturers Electric Vehicles, Sohinder Gill, where he talked about the post Covid-19 period and the challenges faced by the industry amid the lockdown.
Siddhartha Sharma - How much impact did the Covid-19 have on the global business of electric vehicles, as well as the impact on Hero Electric's business?
Sohinder Gill - India probably hasn't changed much in the 8 to 10 weeks of lockdown. But people have come up with some new ideas, which will lead us to the new India. If we talk about Hero Electric, then we are slowly moving towards being normal. Because of the lockdown from past one and a half months, the production has been largely affected. But the dealers have suffered the most in this period. So Hero Electric started an online initiative for dealers, which got a very good response. In the last one month, about 17 thousand inquiries have been received about buying a car. This has led to a positive wave. Virtual platform is also the reason for this demand. The effect of lockdown is also visible on our environment, which is quite nice to see. Among the most polluted cities in the world, the top 14 cities are from India. But during this period we felt that if we give a chance to the nature it will heal itself.
Siddhartha Sharma - How will the business model change due to Covid-19? There is a set pattern in EV Manufacturing to sell a vehicle, but will we see changes in the business model after lockdown?
Sohinder Gill - A big change is coming. Especially with the digital virtual platform. Nowadays there is a dilemma in the customer that if he comes out, will he be able to protect himself? In this situation, the importance of home delivery of the product has increased. Today's lower and middle income group people prefer to travel by personal vehicle than commercial. This will increase the demand for electric vehicles. That means the customer does not have to stand in a line to buy petrol or diesel. Exchange of currency notes are avoided. Also, there is less need for services. Customers say that if we use public transport, then it cost 50 to 100 rupees daily. But if we take an entry level vehicle with a single battery for 50 to 60 thousand rupees, for 10 to 12 rupees, you will be able to travel 60 to 70 km without getting overcrowded. In such a situation, the customer thinks that I should buy a petrol-diesel vehicle of 70 to 80 rupees a day or charge a battery for 10 to 12 rupees. Electric vehicle is more economical for the customer in all this calculations.
Siddhartha Sharma - Many MSME and SME works along with auto manufacturers. Likewise many MSME and SME firms also work with electric vehicle manufacturers. PM has announced a relief package of Rs 20 lakh crore for SME and MSME. What will you say about this?
Sohinder Gill - In the current situation of the industry, MSME and SME are justified in loss. But there are a lot of opportunities for electric vehicle and its associated MSME and SME. There is definitely hope in this sector. But the demand for petrol-diesel powered vehicles is not likely to increase in the coming days. It is being said that there will be a 40 per cent drop in petrol-diesel vehicles in the coming years. On the other hand, there may be an increase in demand for electric vehicles. If the lockdown opens, the electric vehicle industry will achieve a turnover equivalent to the last one year in 8 months of business. Many MSME firms are converting to electric vehicle manufacturers. We welcome these firms, But investment will remain an issue for the firms that convert to electric vehicle. Yet in my view there is a lot in PM Modi's relief package to shift towards electric vehicle. Till now, there was a problem with localization, but perhaps PM Modi's package will serve as the main source of it.
Siddhartha Sharma - How do you see the new India and how do you think the new India will be. What would you say about this?
Sohinder Gill - The atmosphere of the country is quite pure at this time. Looking at it, it seems that a small invisible virus can cause a stir. Such problems can come in future too. Look at this and think how we have to protect our life. In such a situation, do what is created for your environment and ecosystem. I think if green recovery is done with Covid recovery, then that will be a big issue. India is in dire need of green recovery. 14 cities of India are considered to be the most polluted in the world. It is said that India is overtaking China in pollution. In such a situation, green recovery along with Covid-19 recovery will be important for me and it seems possible. Policy makers are very strict and agile about the electric vehicle. If the consumer's mindset is added to it, we can achieve green recovery. According to me, new India means Clean India and Green India.
Posted By: Talib Khan
