EV demand growth unlikely to reach significant level in next fiscal: Goenka

Greater Noida, Feb 5 ( PTI) Growth in electric vehicles demand is unlikely to reach a significant level for major players at least in the next two fiscal, and in personal electric mobility segment it may take even longer,  M&M Managing Director Pawan Goenka said on Wednesday. Goenka also said that the heavy commercial segment, particularly the truck segment, may not see demand revival before the end of August or early September.

"Volume growth is there in the electric vehicle space but in terms of numbers, it is not very significant. Overall, volume of the companies is growing but at a slower pace. I hope the products that the industry is launching will drive growth, but I dont think the volume growth for the main players will be significant, even in the next two fiscals," Goenka told PTI at the Auto Expo here. Citing his company' performance in EV sales, he said Mahindra clocks around 45,000 passenger vehicles a month, of which EVs account for only 1,500.

"Therefore, I dont think its going to be 15,000 per month in the next two years. So till it gets to that level, it is not  significant in the overall scheme of things. "So, I would say depending upon how the growth is, from the fiscal year 2022-23 EVs should have  significant volume for many players," he said.

But, it would also depend on the segments in which the EVs will be launched as those  who are primarily in personal segment will take a longer time than the ones who are into shared mobility space, Goenka added. Mahindra have line up three vehicles for the launch going forward, he said, adding "two of these vehicles will be rolled out in the next fiscal while one may spill over to FY22".

He said heavy commercial vehicle industry was down by 50 per cent last month over January 2019, which was already on a lower base of last year. The concern is that the BS VI price increase would be significantly higher for trucks than cars, and therefore BS VI sticker shock will last longer for the truck industry, he said.

"So, we will have to wait and see how economic activities change. The buying in truck is not discretionary but decision-based. If the demand for freight does not go up, the truck industry cant revive," he added. Goenka said the much-awaited vehicle scrappage policy may be announced soon as there were indications from the government to this effect.

He said the company plans to launch the full range of its Furio trucks, which was launched a year ago, to cover entire 9-14 ton range during the year.