News
Yentha AutoBuzz: Electric Two-Wheeler Industry Struggles
With more government support, the industry expects to benefit in the coming years | By Sambhu Sankar
On Sep 02, 2010

Kowdiar, Trivandrum: While two-wheeler majors like Yamaha, Hero Honda, Bajaj, Suzuki, etc. are crossing milestones year after year in the number of units sold in the country, electric two-wheeler industry in India is struggling for survival.

It is reported that the major manufacturers of electric two-wheelers are making huge losses. Out of 60 manufacturers, including local assemblers, only a few have managed to remain in the competition.

A major reason for this is the lack of government support for the sector. When developed countries like Japan, Singapore, US, UK and France offer subsidy on the purchase of electric bikes, in India, only Delhi and Lakshadweep give a subsidy for electric vehicles.

Praveen, Sales Manager of Mylakkal Motors, Kazhakoottam, finds that terrain of Trivandum affects sales of the bikes. “There is tax rebate for electric vehicles in Kerala. While the tax for other vehicles is 12.5 per cent, the tax when you buy an electric scooter is only four per cent. But the main problem why electric scooters don’t sell as much in Trivandrum is more because of the geography of this place. These scooters are not powerful enough to climb slopes and there’s hardly any place in Trivandrum you would find without dips and slopes. Used on such a terrain the battery life of the vehicle gets affected. You wouldn’t get the mileage that the company promises. And that is the reason why our customers report different mileage,” he says.

“I brought my electric scooter for Rs. 32,000. I’m happy with my purchase but I wish the price has been a little lower,” says Cris Seetha, our reporter, who zips around Trivandrum on her eco-friendly scooter.

Another reason for the failure of the electric two-wheeler in India is the issue concerning quality and maintenance. For example, if you look for a review of an electric bike on the website, you would find many people complaining about performance, maintenance and most importantly, its batteries.

 

“Another reason people are reluctant to buy electric scooters is the maintenance issues. But, that is a myth. Actually, any electric vehicle is low-cost on maintenance. With our scooters, our customers may have to change one cell or the other in the battery after about two years and that would cost them only roughly Rs. 2,000. Another issue is that there are not many local mechanics who know to repair an electric vehicle. Correcting a mistake in these vehicles would need both mechanical and electrical knowledge on the mechanics’ side and not many of them are trained on the electrical side,” says Praveen.

Yentha AutoBuzz: Electric Two-Wheeler Industry Struggles

 

 

“An average of eight vehicles roll out of our showroom every month. I know that is not a good figure. But we hope to improve. I only wish the government also help us by giving subsidy for electric vehicles,” sighs Praveen.

“We make the bikes ourselves and sell it on demand basis. So far, the response has been good. But I wish more people turn to electric vehicles. It is eco-friendly as there is no problem of emission,” says Sanjay of EV Future, Auroville, Tamil Nadu.

However, concerns over maintenance, performance and sturdiness of electric vehicles remain a challenge that the manufacturers will have to take up. With government support, and more local players chipping into make quality components for electric scooters, it can be hoped that the industry would stabilise in the coming years.

 

Sambhu Sankar

 

VOTE: First-Ever Online-Athapookkalam Contest

 

Yentha Onam Coverage

 

More In Yentha AutoBuzz:

Biofuel From Whiskey By-products

Suzuki Motorcycle Launches SlingShot

Maruti Suzuki To Rival Nano

 
 
Report Abuse    Report Error    Comments SMS/E-Mail
Bookmark and Share
 
News Features Columns