About 99,165 electric cars were sold in India in 2024, but electric car penetration -- share of electric car sales in total sales -- was just about 2.5 per cent.
Multiple electric vehicle (EV) launches by major carmakers at the Bharat Mobility Global Expo have dispelled any doubts about the segment, reaffirming that EVs are the sole viable alternative for achieving decarbonisation, Santosh Iyer, managing director (MD) and chief executive officer (CEO), Mercedes-Benz India, told Business Standard.
“At last year’s expo, the key debate was whether the industry should focus on electric or explore other powertrain systems. The shift since then has been remarkable. The question has evolved from ‘why electric?’ to ‘which electric?, marking a fundamental transformation. Today, there are more options, with all companies offering something (EVs) in their portfolio. This is the better and only alternative for decarbonisation,” he stated.
About 99,165 electric cars were sold in India in 2024, recording 20 per cent year-on-year (Y-o-Y) growth, according to Federation of Automobile Dealers Associations (Fada).
However, electric car penetration -- share of electric car sales in total sales -- was just about 2.5 per cent in India in 2024.
Iyer said GST on electric cars should remain at 5 per cent till the penetration level reaches between 20 and 30 per cent.
“Our recommendation is clear that till the time the EV segment doesn't reach 20-30 per cent penetration level, we should not distort the market. We should continue, and then it should taper down. You need that critical mass of EV sales,” he told the newspaper during an interview at the expo.
Iyer said that the number of EVs, which have been launched till now, are inadequate.
“Even in our portfolio, we still have hardly 5-10 per cent of electric cars. The balance is still internal combustion engine (ICE) run. I think we need many more cars across every price segment for electrification to go further,” he said.
Mercedes-Benz India's EV penetration went up to six per cent in 2024 from three per cent in 2023.
Iyer said that multiple electric car launches by major mass market players in India will give a major boost to the EV ecosystem players -- charging point operators and battery recyclers, among others -- in terms of investments.
“When it came to the development of charging infrastructure across India, the issue till now was whether you should do capital expenditure on a technology whose pace of expansion was unclear. So, the companies that were into the establishment of charging systems or battery recycling systems were a bit cagey because they never knew the pace of transformation. Even today, it's very difficult to predict. However, carmakers are investing a lot on electrification (launching electric cars) and for every price segment, it gives a lot of confidence to the entire ecosystem,” he added.
He said that there is a need for a Unified Payments Interface (UPI)-like moment for EV charging.
“For example, just as all banks operate on a single platform for payments, can't there be a unified platform for charging?
Imagine having a single app, managed by the Bureau of Energy Efficiency. It not only helps you locate a charger but also allows you to make payments seamlessly. Such a system would significantly enhance user convenience,” he said.
“A lot needs to be done to get the charging infrastructure unified. Today, you have multiple apps, multiple payment gateways. This makes customer convenience always a bit challenging when it comes to payments. However, I think we are getting there. Policy making is getting there. The industry is getting there,” he added.
Feature Presentation: Rajesh Alva/Rediff.com
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