As government has increased emphasis on replacing fossil fuel powered vehicles from Indian roads Chineses electric vehicle manufacturers see lucrative opportunities in the country.
Chinese companies such as BYD and Changsha Sunda have engaged in initial talks with Automotive Component Manufacturers Association (ACMA) and the Society of Manufacturers of Electric Vehicles (SMEV) for selling electric buses and setting up assembling plants in India, reports Mint.
BYD has already been selling electric vehicles in India via Gold Stone Group. Recently, it also supplied six electric buses to the Brihanmumbai Municipal Corporation (BMC). The aforementioned Chinese electric bus manufacturers are eyeing to assemble vehicles in India.
Since the Indian government is planning to make India free from diesel and petrol powered vehicles, electric bus manufacturers are expecting to get the required support from the government and stakeholders concerned.
Last year, Gujarat government undersigned an agreement with an unnamed Chinese electric automaker to set up an electric bike manufacturing facility in Rajkot with 50,000 annual capacity.
While government push for the electric vehicle is undoubtedly a laudable policy, replacing diesel-powered buses from the Indian road will be expensive. Electric buses come at the 4X price of general diesel-run buses. Bearing such cost would be challenging especially in a country where penetration of buses is very low.
China manufactures the maximum number of electric vehicles globally. Over the past few years, EVs manufacturers are eying several geographies to achieve scale outside China. India seems to be one of the key markets for such manufacturers in coming years.
Meanwhile, Chinese smartphone major Xiaomi is keen to sell electric vehicles in India. It wants to sell all types of vehicle for transport conveyance and other transport equipment, whether based on electricity or any other motive or mechanical power, including the components and spare parts.