Electric vehicles face slump due to pandemic crisis

T he unexpected spread of the coronavirus pandemic has created an unprecedented situation for electric vehicles (EVs). Many auto parts suppliers pointed out that almost all the OEMs have started reconfiguring their activities to focus more on existing processes, and it turns out that EVs have no place in their new normal, at least for the short term.

In the recently organised webinar by ETAuto, prominent auto component makers highlighted that despite investing significantly, many of their OEM customers have temporarily suspended orders for EVs due to economic headwinds. According to Vivek Kumar Jakhmola, Sr. Vice President and Domain Head – Body, Emission & Trim Domain, Lumax, there are certain EV development projects that have been deferred for at least one year due to the coronavirus fallout. “Seeing these deferments, I can easily say that electric vehicles in India have definitely taken a backseat. In case this global crisis extends beyond six months, it will further impede the auto industry’s shift to electric vehicles,” added Jakhmola.

Agreeing to him, Purushottam Panda Executive Director, PowerTrain, Maruti Suzuki India mentioned that manufacturers just couldn’t make electric vehicles work in commercial terms yet. “At present, people only buy what they can afford. Electric cars remain expensive at a time when the affordability of consumers has reached an all-time low,” said Panda. Put another way, the inclusion of battery, battery management, electronics and cooling add an extra layer of cost which makes the electric vehicles equation untenable.

Experts opine that in the post-COVID-19 era, the economic climate and uncertainty may convince Indians who can afford electric vehicles to wait for another 12-18 months before purchasing one