Demand generation is no longer as big a problem for the electric vehicle (EV) industry as supply change management is, said industry executives at the ET Auto EV Conclave 2022, adding that India must now focus on developing a local supply chain to improve production as well as reduce dependence on China.
Demand far outstrips supply in India’s EV market and manufacturers are running pillar to post to increase their output.
If not for supply chain constraints, India’s electric two-wheeler market would easily be over 100,000 units a month in size, said Tarun Mehta, the chief executive of Ather Energy. For reference, about 2.3 lakh electric two-wheelers were sold in India in 2021, of which 1.4 lakh were high-speed vehicles that require registration.
“The demand is at least 50% to 100% higher than what the industry is selling right now,” Mehta said. “At Ather, we are able to sell only 20-30% of our demand.” The country doesn’t need more demand enablers like subsidies for EVs, he said, it needs a better domestic supply chain.
Diego Graffi, the managing director of Piaggio India said that the EV sector in India needs a better supply chain, not just in terms of technology but also in terms of volume. The ongoing shortage of semiconductors has only worsened the situation for the industry.
As the country focusses on developing a local supply chain, it must also focus on innovation and develop technologies that reduce the country’s reliance on China, said Andy Palmer, the chief executive of Switch Mobility – the EV arm of Ashok Leyland.
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