MG Motor India, a part of China's SAIC Motor Corporation, on Thursday said it is working on a concept of a sub-Rs 10 lakh electric vehicle (EV) for India that could be launched in three years as part of strategy to take the lead in making EVs mainstream.
The company, which on Thursday unveiled its electric SUV model ZS here, said it will leverage on the strength of its Chinese parent in EV technology for the concept EV, for which in the next one year it will do preliminary development and consumer insight study.
"Small EV is a concept right now in our mind. There is no productionable concept but we think very seriously that if EV has to become mainstream the price point has to be less than Rs 10 lakh," MG Motor India President & Managing Director Rajeev Chaba told PTI in an interview.
He further said, "The team has started looking at it (concept EV)...It will take at least one year to complete the whole project and then the production, cost issues and everything will happen."
When asked how long will it take for the company to launch the planned EV, he said, "First it depends on whether this whole concept can be commercialised based on consumer preferences. Even consumer insight and acceptance of that concept is very important...If there is favourable response from consumers, it could take three years."
Stating that EVs are currently niche and premium products and the company is building "solid foundation" through ZS EV, Chaba said,"We feel the next inflection point will come when we are able to launch EV in less than Rs 10 lakh. Then the volumes will start coming."
He further said, "We are the only company other than Tesla to invest in a (EV) battery plant. So it is a serious thing. When we have all these strengths why should we not bring it in India? That's the whole intention."
Stressing that the MG Motor India is serious about EVs, he said, "It is not a tokenism from our side. We are a serious player in the EV market. This is the way for us to differentiate from other big players in this market."
Keeping in mind the "unique" Indian customers' paying capacity, frugalness and penchant for value for money, he said, "We are trying to find a mass or mainstream (EV) solution and that's what we are working on right now."
"Theoretically, we would like to believe that there are many other markets like India. When you do frugal engineering in India and when you successfully commercialise that product, there will be many more markets who may like to have that product."
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