The Hindu Business Line : `Bright prospects for electric vehicles'

With petroleum prices shooting up and newer emission control norms coming in, electric vehicles may well be the future for transportation in the country.

According to a survey conducted by AC Nielsen on the potential of electric two-wheelers, an overwhelming percentage indicated a positive acceptance to the concept.

Further, these vehicles can run at one-tenth of the cost of a petrol vehicle.

Given the scenario, a number of firms are strategising to enter this space. While the Maharashtra-based Ace Motors and Electrotherm have already launched vehicles in this space, the UK-headquartered Ultra Motors is set to roll out its electric vehicles by the last quarter of the current year.

The company is currently in talks with leading domestic two-wheeler makers for partnerships and would be launching four electric two-wheeler variants, including scooters and bikes.

According to Mr Deba Ghoshal, Marketing Director, Ultra Motors, the company would utilise its partners' facilities to assemble these two-wheelers.

Ultra Motors has already entered into a contract manufacturing tie-up with a Gujarat-based firm to source the electric vehicle kits, which accounts for 70 per cent of the cost of the vehicle. The final product may eventually be co-branded between Ultra and the two-wheeler maker.

The electric vehicle technology has already found acceptance in the three-wheeler space in India with a number of players announcing entry. Internationally, while electric cars have found a higher degree of acceptance, in India the only player present in the category is the Bangalore-based Reva.

According to estimates, the market for electric vehicles is expected to grow manifold over the next few years. In fact, an earlier survey pointed out that globally the electric vehicle industry was expected to grow by more than ten-fold between 2003 and 2013.

In 2003, the industry generated approximately $16.2 billion in global sales. The electric bike as a mode of transportation has found wide acceptance only in China.

More Stories on : Outlook | Two/Three Wheelers | Non-conventional Energy

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