Still evaluating feasibility of launching EVs in India, says BMW
German luxury automaker BMW on Wednesday said it is still evaluating if it should launch an electric car in India as the ecosystem for launching such vehicles remains "ambiguous and uncertain" in the country right now.
The company, which on Wednesday introduced the all-new 3 Series sedan in the country, said it has the required technology and products, and is watching the space carefully for entering the electric mobility space in India.
"Specifically in India, there is a lot of ambiguity on how this transition (towards EVs) is going to take place. There are lot of grey areas right now," BMW Group India President and Chief Executive Officer Rudratej Singh told PTI.
The infrastructure build up for the ecosystem that is essential for EVs or any new technology is ambiguous and uncertain, he added.
"We will watch that space very carefully," Singh said.
He said BMW is already doing some pilots in the country with i3 electric cars in various metro cities. The company has been studying the feasibility of launching i3 electric car in India.
"We are testing waters," Singh said, adding that finally it is the customer who decides when the company should get into the vertical.
The Indian government also has a target to achieve six to seven million sales of hybrid and electric vehicles by 2020 under the National Electric Mobility Mission Plan (NEMMP).
The NEMMP 2020 is a national mission document providing the vision and a roadmap for faster adoption of electric vehicles and their manufacturing in the country.
Recently, Finance Minister Nirmala Sitharaman encouraged electric vehicle (EV) manufacturing and adoption in India during her maiden Budget speech. This includes a reduction of Goods and Services Tax (GST) from 12 percent to five percent, exemption of customs duty as well as additional income tax deduction of Rs 1.5 lakh on the interest paid on loan for purchasing EVs.
(Edited by Megha Reddy)