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Vehicles that run on traditional fuels, such as petrol and diesel, as well as those powered by new resources like electricity and hydrogen, will coexist in India in the future, said Vinod Aggarwal, Managing Director and Chief Executive Officer of Volvo Eicher Commercial Vehicles (VECV) on Monday.
On September 12, Road Transport and Highways Minister Nitin Gadkari said the automobile industry must reduce the production of high carbon-emitting diesel vehicles, or else the government may consider imposing an additional 10 per cent goods and services tax (GST). As major auto stocks tumbled in reaction, he clarified that no such proposal was under the government's consideration.
"Commercial vehicle industry, as well as the entire auto industry, is going through a major transformation because of the government's agenda of decarbonisation. In line with that, you will see new vehicles that can run on alternative fuels and electricity. We are also working on those technologies, but it doesn't mean that the existing technologies will become absolutely obsolete. There will be a place for both technologies side by side," Aggarwal told Business Standard in an interview.
On Monday, Aggarwal unveiled four new heavy-duty trucks featuring more powerful and fuel-efficient engines. VECV's Eicher unit witnessed a 15 per cent year-on-year growth in sales, reaching 36,178 units in the first half of the current financial year.
He said, "It is not possible to migrate so fast (to new fuel technologies) because some of the requirements are met by the existing technologies only right now. These technologies are very relevant as of now....Diesel will remain, but alternative fuels, electric, hydrogen, etc., are going to come. Right now, these alternative technologies are in a nascent stage not just in India but all around the world."
