Mercedes-Benz discourages India's all-electric cars push for 2030
What's the story
Mercedes-Benz India has asked the government "not to rush with the all-electric vehicles push", as such a push might foreclose better technological solutions for future generations.
Roland Folger, the MD of Mercedes-Benz India, said that the nationwide all-electric vehicle push was technologically and commercially unviable.
Furthermore, electric vehicles have become tech of the past as the rest of the world pushes towards hydrogen-powered vehicles.
E-cars
Modi government's plan for all-electric cars by 2030
The Indian automotive sector was taken by surprise last year when the Modi government announced that it plans to make all cars in India electric by 2030.
The announcement came on the back of the government's plan to skip one stage in pollution standards and introduce BS VI fuel within two years.
However, the plan faced criticism from several quarters for its impulsiveness.
Timeframe
Mercedes-Benz India managing director points out loopholes
Folger added that the timeframe announced for the government's plan was very short.
Given the long-term nature of the automotive industry, Folger said that the government's plan, if pushed, would discourage all auto companies from investing and developing new technologies and products.
Further, Folger said that policymakers and regulators should be aware of the technological front and the global push for hydrogen-powered cars.
Economic burden
The economic burden on India would be massive
For the Modi government's plan to work, India would have to invest hundreds of billions of dollars in setting up charging stations and other infrastructure all across the country - something which isn't economically viable as of now.
Given the financial burden of the plan, Folger said that the government's plan wasn't well thought out in terms of strategy, planning, and technology.
Power requirements
Additional power demand would be counterproductive
Apart from economic and timeframe issues, Folger further said that the plan would be "more counter-productive in terms of additional power demand".
With India still building and supporting additional coal-based thermal power plants, the additional power burden would increase levels of pollution considering that India doesn't have the financial or technological capability to move completely beyond coal power plants.
Way forward
Folger suggests a push towards plug-in hybrid cars
If reducing pollution and moving towards a sustainable automotive sector is indeed the government's agenda, Folger suggested a push towards "plug-in hybrids".
Despite the cars being more expensive than electric cars, Folger said that a well-planned nationwide push for plug-in hybrids would be less demanding both economically and infrastructurally - the cumulative cost for such a push is likely to be much less.