Bosch to power low-cost electric two-wheelers

Says exposure to Chinese electric two-wheeler market gives inherent edge while tapping Indian market

German auto parts maker Bosch is of the view that the Tesla model of high-end electric mobility will not work in India. The company instead is focusing on the opposite extreme and investing in solutions for powering low-cost electric two-wheelers for the country. 

Bosch will introduce a slew of electrified solutions for light vehicles including two-wheelers and three wheelers in India over the next 12 months. The company is eyeing the growing demand for electric two-wheelers which could hit 1.2 million units by 2020.

“Bosch is ready to start its journey of electrification in India first through light vehicles. As the opportunity expands, Bosch India will foray into other segments. We will offer the full line of solutions to meet the need of the Indian two-wheeler market,” said Peter Tyroller, member of the board at Bosch Group.

The company says its exposure to the Chinese electric two-wheeler market, which is already quite large, gives it an inherent edge while tapping the market in India.  However, the company has already begun working on low-cost mobility solutions and wants to focus on local development to adapt its global solutions for Indian road and weather conditions.

Over the coming months and year, Bosch will set up a localisation timeline for producing electric vehicle components in India. At first it says it mayonly be able to produce electric vehicle control units in India, but going forward, once demand increases it would like to produce even the Lithium-ion battery packs and motors locally. “Bosch India with its current offerings is in advanced stage of development and plans to move into serious manufacturing after 2018. We will aim to increase the extent of localisation of our electrified portfolio in India,” added Tyroller.

When it comes to electrification of passenger vehicles, Tyroller said the high-cost of batteries and other technologies today will keep them out of the hands of public in the near future. However, he believes that sales of electric cars in the country would be boosted by fleet operators and ride hailing players. India’s largest ride hailing company Ola has already begun experimenting with electric mobility in Nagpur. Experts say that while the upfront cost of an electric vehicle is a lot more, given the low running costs, they could make immense sense for fleet operators who could recover their investments as quickly or more quickly than with gasoline powered cars.

For this to happen, the cost of electric cars will need to go down even further, and while the government is looking at subsidising the cost of such vehicles, Tyroller said it was not a sustainable method. The government’s target of making India a 100 per cent electric mobility country by 2030 he said would require funds that the government simply does not have.

“In my opinion, you cannot subsidise electrification forever. It must be a pull market, with the demand coming from the market, because the government will not be able to subsidise electrification for even 10 years. It won’t work, it’s too much money,” said Tyroller, adding that the Indian government’s electric plans might be a little too ambitious too pull off.