Policy on two-wheelers: Maruti's Bhargava urges govt to focus on e-bikes

As the key objective of the EV policy is to reduce the burgeoning oil import bill, we should concentrate our attention on two-wheelers, which is the low-hanging fruit and where conversion also is much

It might sound incongruous. But the country’s largest carmaker is pushing for a policy that should focus on electrification of two-wheelers rather than cars. The logic: Two-wheelers consume a lot of petrol, and e-cars will be unaffordable. 

R C Bhargava, chairman of Maruti Suzuki, said: “Two-wheelers constitute 62 per cent of petrol consumption in the country, while cars only 36 per cent. As the key objective of the electric vehicle (EV) policy is to reduce the burgeoning oil import bill, we should concentrate on two-wheelers, which are the low-hanging fruits and where conversion is much easier.” 

In 2017-18, 3.28 million passenger vehicles were sold in India. Of this, 2.17 million were cars. The number of two-wheelers was many times higher, at 20.19 million.

Bhargava said, at the current average price, 1 kWh of a lithium battery pack is $200. Small e-cars won’t be affordable, as they will require a minimum battery of 14 kWh, which would cost $2,800. “About 78 per cent of the cars sold in India are under the Rs 500,000-600,000 price bracket. Electrification will increase their costs by Rs 400,000-500,000. This might make sense in the top end of the market, but that market is very small,” he said. 

Entry-level two-wheelers will only require 1.5 kWh batteries, since the average usage of such a vehicle in India is not more than 50 kms per day, according to Bhargava. So, the additional financial burden will be limited, too. Secondly, two-wheelers will not require a large charging infrastructure. 

According to Maruti Suzuki, if we assume that 30 per cent of the passenger cars from now on will be electric by 2030, effectively only 17 per cent of the total cars on the road would be powered by electric batteries. So, majority of the cars will still run on fossil fuels. That is based on the assumption based on current demand projections that the total number of cars on the road will move up from 28-30 million currently to 70 million by 2030. 

Bhargava said India was unique, as neither Europe nor China has a high dependence on two-wheelers to petrol consumption, so a solution on electrification followed by them is not relevant for India. 

For cars, the solution, Bhargava said, was to make a massive push towards CNG, which is readily available. But the stumbling block is the shortage in dispensing stations, he said. Though roadways and highways minister Nitin Gadkari’s announcement on setting up of 10,000 new CNG stations could be a game changer. 

Bhargava said the jury was still out on whether electric (because of the problems of availability of lithium) is the best solution or hydrogen would be the way forward. 

Two-wheeler experts, however, say Bharagava has underestimated the cost of battery on electric two-wheelers. “The question is whether you are making a Reva, which was cheap, or a Tesla, which is expensive but high quality. Both are EVs. Or, whether you are making a cheap Chinese electric scooter or a high-quality one,” a senior executive of a two-wheeler manufacturer said.

Clearly, most of the new EV players in India are using larger powered batteries that offer higher mileage per charge, but are more expensive and are differentiating their product from fuel-powered products. 

Bengaluru-based Ather Energy’s electric scooter, for instance, is powered by a 2.4 kWh battery and is retailing at Rs 125,000, much higher than a normal scooter. And, Pune-based Tork Motorcycles has showcased an electric mobike, which can power a motor at 6 kWh. By the same calculation, this will add $1,200 to the price of the product.