TVS Motor Company has announced its foray into electric vehicles with the launch of scooter iQube Electric. The scooter can travel up to 75 kilometres in a single charge, reach a top speed of 78 km per hour, and comes equipped with a home charging system. The scooter, which was launched in Bengaluru last week, costs 1.15 lakhs. The company plans to take it to Delhi, Hyderabad, Chennai, Mumbai and Pune in phases. TVS has a capacity of making 1,000 electric scooters each month.
CNBC-TV18 caught up with the company chairman Srinivasan for his views on electric vehicle market in India, the Union Budget 2020 and the auto industries demands for a GST rate cut.
>> TVS Motor unveils its first electric two-wheeler with 75 km range; price starts at Rs 1.15 lakh
Srinivasan said that the company has tried to give customers a connected vehicle which can replace their smartphone. The scooter has been equipped with the TVS SmartXonnect platform and its features include geo-fencing, incoming call and SMS alerts, charge status and navigation assist.
Another official said that the company has tried to make an iPhone on wheels. Company officials said that TVS is focused on gaining experience and feedback on electric vehicles and may launch an electric three wheeler in a year's time.
Srinivasan said he expects prices of electric vehicles to come down in five years with a breakthrough in battery technology. He emphasized that greater adoption of green mobility would come with a breakthrough in battery technologies and not subsidies. The breakthrough can even be non-lithium, he said. "TVS is looking to invest in making mild hybrids. We request the government not to punish hybrids with a 28 percent GST [goods and services tax] rate", he said.
About the Union Budget 2020, which is set to be presented on February 1, Srinivasan said that the government should look at giving tax breaks to the middle class. "Banks and NBFCs [non-banking finance companies] need to increase financing. MSMEs [micro, small and medium enterprises] which generate 70 percent employment need better lines of credit", he added.
The industry veteran also explained why the automobile industry in the country is asking for a ten percent reduction in GST. He said, "Our customers have been hit with multiple shocks that have led to a 45 percent increase in prices. We are looking at zero or negative growth in the first half of next fiscal. The industry needs an 18 percent GST to offset the price increase".
TVS has said that it would make a full transition to BSVI by the end of February and has nearly exhausted its BSIV stock. Talking about the planned capital expenditure for FY21, Srinivasan said: "We are not looking at increasing capacity, as we working at 70 percent capacity utilization right now. Investment in the next one year would be in newer models rather than more capacity."
