India-UK FTA and Tesla in India will revive momentum in Indian EV industry: Pawan Goenka

The recent India-UK free trade agreement (FTA), following the entry of Tesla in the Indian EV market, has pushed more momentum in India’s EV revolution, according to MD Pawan Goenka, a former MD of Mahindra & Mahindra, CNBC TV reported. 

Citing Goenka, CNBC-TV18 reported, “The FTA signing that happened yesterday, and the launch of the Tesla Model Y last week — both will have a positive impact on the EV movement in India,”

He thinks these events will make more people aware and interested in exploring electric vehicles from Tata, Mahindra, and MG, which now make up roughly 95% of the passenger EV market.

Goenka said that after a phase of slowdown, India’s EV journey has finally entered the fast lane of progress. He stated, “The Indian EV movement took a long time, much longer than anyone had anticipated. But now I think we are getting there,” the CNBC TV report added.

More than 4% of passenger vehicles are now electric vehicles (EVs), with three-wheelers leading the way with more than 60% penetration and two-wheelers quickly rising into the upper single digits.

Highlighting the world-class standards achieved by domestic EV production, he added, “None of these models are compromised in any way, shape, or form. They’re as good as ICE engine models in terms of features, looks, and digital technology,” the report said. 

He also praised the journey the EV industry has taken so far, stating that 500-km range and lifetime warranties on batteries have become more readily available. 

Goenka cautioned about the issue of EV exports. According to him, the industry will fail if it attempts to export before preparation. Right now, the main priorities should be building scale, keeping costs under control, and producing the appropriate goods at the right price for the local market. Moreover, he anticipates that after the domestic market is well-established, exports will follow.

Addressing the ongoing debate on hybrids versus pure EVs, Goenka reiterated his long-standing view: 

The report further captured Goenka views on hybrid versus pure EVs, He said, “Electric vehicles do two things — reduce dependence on imported oil and make our cities cleaner. While hybrids improve fuel efficiency, they do not eliminate emissions. I do not see hybrid vehicles — even strong hybrids — as the solution to the problem we are trying to solve.”