Honda to wait for policy clarity before firming up EV plans in India

Japanese auto major Honda said today that it will wait for clarity in policy for electric vehicles (EVs) in India before firming up its plans for the segment.

"In order to stitch up a strategy (for EV segment), we are requesting to have a roadmap regarding plans of charging stations... Without a clear policy, it will be difficult to select models," Honda Cars India (HCIL) President and CEO Yoichiro Ueno told reporters here.

Only after there is clarity, the company would be able to assess whether such vehicles could be manufactured in the country, he said.

Terming establishment of charging infrastructure as the biggest challenge in the EV space in India, Ueno said that in a big country like India combination of various kind of electrified vehicles, including photo electric and plug in hybrids, would be beneficial.

He said the company is also requesting the government to reduce the tax difference between small and big cars.

Tax benefit favours small cars. We are requesting the government to moderate tax structure. Then we can bring more models to meet the requirements of various customers, Ueno said.

With rising incomes, demand for premium cars would be much higher in the country going ahead, he added.

When asked about sales growth outlook for the next fiscal, Ueno said the company expects to grow better than the industry.

"The industry is expected to grow by 6-7 per cent. We aim to grow higher than that. It could be close to double digits," he said.

On new launches, besides the three announced for the current fiscal, Ueno said the company is assessing introduction of HR-V model in India.

On plans to launch models in the compact segment, he said that the company currently has 4 models in the segment which are doing pretty well.

"We expect that over 4 metre segment to grow in the country. That is why we are reinforcing the lineup in this segment as well," Ueno said.