UP's sops for hybrid vehicles irk EV companies, add to industry's June sob story
electric vehicle (EV) manufacturers, especially as it comes hard on the heels of a plunge in June sales. It's also divided the industry, pitting those that are betting on pure electrics such as Tata Motors against those that prefer the hybrid route, like Toyota and Maruti Suzuki.
Sales of electric cars in June plunged 13.5% from the year earlier, having suffered a marginal drop in May, triggering fears that the Indian market may be following global trends. After last year's euphoria, domestic sales slumped to 20% growth in the January-June period to 46,845 units. That's down from a 135% surge in the same period last year, prompting Tata Motors and others to recalibrate expectations.
UP Govt Holds Meeting with Auto Cos
Union minister Piyush Goyal expressed his concern Wednesday, saying he had been «pained» to learn of the EV sales drop. Companies such as Tata and Mahindra have not commented on the UP government's decision to extend incentives on hybrids. The state government is also learnt to have held a meeting with automakers Thursday to discuss a road map for promoting EVs.
According to vehicle registration data collated by the Federation of Automobile Dealers Associations (FADA), electric car sales declined to 6,894 units in June from the same month last year. The drop is the steepest in almost two years since FADA started reporting monthly EV sales data.
While carmakers like Maruti Suzuki are hoping other state governments will follow Uttar Pradesh, electric car manufacturers said this will undermine their
