New Delhi : The talk at most corporate gatherings of automotive companies inadvertently veers towards the concept of electric vehicles. From product development challenges to erecting charging infrastructure to convincing buyers to safe disposal of worn out batteries, debates are common at such events. Let us take a look at how pocket-friendly is India’s first all-electric Hyundai Venue vis-à-vis other car. But, first, here’s a complete wrap of all the main developments in the auto sector that made headlines this week.
BMW launches X7 at Rs 98.9 lakh
BMW’s X5 has always been the top SUV in the company’s line-up. Now, the X7 takes pride of place as BMW launched the luxury SUV on July 25. Dubbed SAV (Sports Activity Vehicle), the new X7 is priced at Rs 98.9 lakh (ex-showroom).
The X7 is BMW’s heaviest SUV in its line-up weighing in at over 2.3 tonnes. In terms of design, the X7 gets a slim headlamp set up with the signature kidney grille growing in size. The rear gets a fairly wide tail lamp with a chrome strip bridging both sides.
India’s auto parts industry could be forced to slash a fifth of its 5 million or so workforce if the slowdown in vehicle sales continues, the president of the country’s largest industry group for auto parts makers said.
India’s auto industry is in the middle of one of its worst slumps. Passenger vehicle sales fell 18.4 percent in the first quarter, and monthly passenger vehicle sales in June fell by the biggest margin in 18 years. The slump has prompted automakers to cut production and automakers and parts makers to cut jobs.
Tata Motors cuts JLR capex
Tata Motors said it would reduce the capital expenditure (capex) at Jaguar Land Rover, focus on improving retails in the domestic market and become a full-range electric vehicles player in India.
The reduced capex guidance for the two British brands JLR now stands at 3.8 billion pounds for FY20 from four billion pounds declared earlier and much lower than the 4.5 billion pounds it spent in earlier years.
Govt has left manufacturers confused: Rajiv Bajaj
The government’s shifting stance on electric vehicles has left the industry confused, with contradictory signals emerging from within the administration, Bajaj Auto managing director Rajiv Bajaj has said.
Interacting with the company’s shareholders at the 12th annual general meeting on July 26, Bajaj said, “Since the last two years, there have been lots of flip-flops as far as government policies are concerned. Sometimes they blow hot, sometimes they blow cold. Sometimes they make very definitive statements. Their own colleagues contradict their statements. And people in the industry are quite confused actually.”
Automakers, dealers disagree over inventory days
Automakers and their dealers do not seem to be on the same page with regards to reporting on stock inventory days.
Dealers of two-wheelers and commercial vehicles have reported high inventory days despite the slowdown in the retail market. During a slowdown, inventory days usually fall to the minimum while they peak during festive seasons.
Honda to tap into hybrid tech to power small cars
Honda Motor Company has set a target to introduce hybrid technology in India that would help it meet new mileage and emission norms till the time the country is ready to host electric vehicles.
Honda Cars India, the second-largest Japanese car brand in India, is the only large automobile company which was yet to announce its approach to the government’s ambition of shifting to green mobility.
How practical is the EV?
Hyundai, India’s second-largest passenger car maker launched the country’s first battery-powered electric SUV called Kona. The Kona is also one of only three electric passenger vehicles one can buy in India, with the other two being Tata Tigor and Mahindra eVerito.
But, the Kona does not come cheap. At Rs 25.3 lakh (ex-showroom), the Kona is the most expensive of the three. However, the high sticker price has not come in the way of buyers. In the first ten days of opening of bookings, the Kona clocked 120 confirmed orders.
But, let us compare the Kona with a life-size rival that runs on fossil fuel instead. One of Hyundai’s highest-selling models and, certainly, India’s best-selling mid-size SUV Creta has dimensions which are pretty similar to the Kona in terms of interior space and overall length.
Creta’s entry variant is priced at Rs 9.99 lakh (ex-showroom) or less than half of the Kona. This variant comes powered by a 1.6 litre, 4 cylinder petrol engine that generates maximum power of 123ps.
These power figures of the petrol Creta can help it achieve a top-speed of 195 km/hr. In comparison, the Kona can clock 120 km/hr at best.
At a mileage of 15 km/litre of petrol the Creta can run for 825 km without asking for a refill, thanks to its 55-litre fuel tank. This is nearly twice when compared to the Kona whose maximum run on a full charge is 452 km. The Kona can achieve that provided the car is run for a maximum speed of 50 km/hr, as per standard test results.
The Creta can store several litres of fuel in seconds, but the Kona takes at least an hour to get fully charged through a fast charger and 19 hours on a slow three-point house charger.
So with the scales heavily in favour of the Creta, does that make Kona an impractical choice? Let’s do a cost of ownership calculation. The Kona will consume 40 units of electricity for the full charge. At Rs 6 per unit, the Kona will cost Rs 240 to run for 452 km (under standard test conditions).
At Rs 0.50 per km, the Kona is extremely economical. In comparison, the Creta petrol can cost Rs 5.2 per km. However, the premium of Rs 15.3 lakh over the Creta will take several years for Kona to become a practical alternative to the Creta.
