According to reports, public sector powerhouse Bharat Heavy Electricals Ltd (BHEL) is mulling a partnership with Japanese automaker Toyota to make electric vehicles (EVs) in India, the second fastest growing auto market in the world.
A top official in the Ministry of Heavy Industries told Business Line that Toyota has approached the engineering and manufacturing firm and is looking for an enhanced subsidy regime to make EV production cost-effective in the country. Toyota is keen on BHEL as the State-owned company has previously manufactured electric buses, and produces heavy electric equipment such as electric locomotives. Officials from BHEL and the Ministry are slated to visit Toyota’s facilities in Japan next month.
“Toyota has invited us for a visit to their Nagoya plant. They want an Indian company to have a pioneering role and we’re weighing whether BHEL can have a technical joint venture for making EVs. That possibility makes sense as BHEL has made EVs before and already makes electric locomotives,” said the official.
Mahindra Reva Electric Vehicles which launched its Electric Car REVAi in Pune earlier this month is currently the only manufacturer of EV cars in India and had a set a target of 12-18 months to triple their sales to 3600 units.
Further, as Panchabuta had reported a month back, India had launched incentive for Electric Vehicle makers of upto 20% of ex-factory price. A ceiling on the subsidy for EV cars was placed at Rs. 100,000 and it was mandated that atleast 30 per cent indigenous content was used in the vehicles sold, a sizeable operation in retail and after sales outlets and a multi-point check system for accounting the retail sale was also available.