(Asia Pulse Data Source via COMTEX) -- TTM | Quote | Chart | News | PowerRating -- As the global crude oil prices continue to defy gravity and even touched record levels of 147 dollars in the recent past, the call for fuel efficient eco-friendly vehicles have been getting shriller. Automobile makers across the globe have been taking steps to meet the demand for less fuel guzzling vehicles, which also have lesser emissions.
Japanese carmakers led by Toyota had taken the lead in bringing out hybrid car with its Prius and recently Honda had also answered with its Hydrogen fuel car Clarity globally. In India also, global as well as domestic manufacturers are responding to the changing needs of the time. Honda has taken the first step of introducing the first hybrid car in the form of its Civic Hybrid. German luxury car maker BMW plans to drive its hybrid within two years in India, while Mahindra & Mahindra has been developing a hybrid version of its SUV Scorpio. Others like Tata Motors are working on electric car on its Indica platform, which will be ready by the end of this fiscal. This car will, however, first hit the Norwegian market and followed by others For the Indian market, record books will remember Japanese auto major Honda as the first to launch a hybrid in the country. Making a statement of its commitment to protect the environment, the company launched Civic Hybrid, priced at Rs 21.5 lakh (exshowroom, Delhi) in June.
Powered by a 1.3 litre petrol engine and an electric motor that deliver 47 per cent enhanced fuel efficiency than a regular 1.8 litre Civic automatic transmission, the car was developed way back in 1999 and sold over 2,60,000 units across the world. India is the 33rd country where Honda has launched the car. ?This is yet another step to strengthen Honda?s presence in India in line with our long term goal of bringing eco friendly vehicles,? Honda Siel Car India president and CEO Masahiro Takedawa said. Honda is clear that it is not looking at volumes from the car but ?is an opportunity to offer to customers technology we have. It is a Honda statement to protect the environment?. The customers also responded positively to the car. On the day of launch itself, Honda claimed it had received over 100 inquiries from its 80 dealerships across India.
Not to be left far behind, German luxury car major BMW also said it planned to drive in its hybrid vehicle to India within the next two years.
BMW is considering bringing the hybrid vehicle in the country after it makes global debut, which is expected to happen in the next 18 months.
?In the next 18 months the hybrid vehicle from BMW will make its international debut. There is a possibility that it could find its way to India,? BMW Senior Vice-President Asia (excluding China), Pacific and South Africa David Panton told PTI Economic Service. Asked for a specific timeframe for the possible launch of the hybrid vehicle, BMW India President Peter Kroncshnabl said ?it could be between 18-24 months?.
BMW, under its Efficient Dynamics programme, has been developing hybrid vehicles and showcased Concept X6 ActiveHybrid at the 2007 Frankfurt Motor Show. Panton, however, said for BMW hybrids were not the ultimate solution that it was looking for in response to the rising fuel costs and emission problems.
?For us it is the hydrogen fuel vehicles that is the long term goal. We have identified it as the future of eco-friendly cars and are working on it. But it is still a long way off from perfection,? he said. While the hybrids may be the talk of the Motown, India?s own Tata Motors revealed that it planned to unveil its electric car by the end of this fiscal. Company chairman Ratan Tata, while addressing shareholders at the Annual General Body meeting of shareholders, said: ?We are developing an electric car project for Norway and hope to deliver it by end of this financial year and then it will be available to employ in other markets.?
It is learnt that Tata Motors has turned to its tried and tested Indica platform for the vehicle.
According to industry sources, the company is currently working on five prototypes of electric vehicles on the Indica platform. ?These will use lithium ion batteries for high energy and power density,? a source said. It is understood that the electric car would have an approximate range of 200 kilometers. Aimed mainly at city driving, Tata Motors? electric car is a part of its larger project on developing eco-friendly vehicles. Besides the electric car, the company is also developing an electric version of its mini truck Ace, primarily for exporting to the US and European markets. The sources said the electric vehicle on the Ace platform is in advanced stage of development. ?The prototype for the vehicle is in production ready stage,? a source added.
Another homegrown auto major Mahindra & Mahindra is also working on various eco friendly vehicles, such as hybrid Scorpio and alternate fuel versions of the vehicle besides electric variants. M&M Vice President, (Marketing, Automotive Sector) Vivek Nayer said the technology for electric vehicle was already with the company.
?We are capable of doing it. Availability of right infrastructure is the challenge as you will need proper facilities to charge your vehicles, while running across the city,? he added. The company, which had showcased its hybrid Scorpio at the Auto Expo in New Delhi earlier this year, is working towards commercialisation of the vehicle. It is also looking at the alternate fuel options for the vehicle.
Nayer said the CNG version of its SUV Scorpio is just a matter of time, especially after it launched the CNG pick-up vehicle, Bolero Pik Up priced at Rs 5.42 lakh.
In the electric car segment, Bangalore-based Reva which had taken the lead in the country is already thinking of increasing its production. It will ramp up its production capacity by five fold this year on account of increased demand.
The company currently has a capacity of 6,000 cars a year and is expanding its production to 30,000 units by the end of this year entailing an investment of up to 20 million dollar. ?We have just completed our test marketing period and now we are expanding our sales to Delhi. To meet the growing demand of REVA, we will be ramping up our production capacities by five fold by the end of this year,? REVA Electric Car Company Deputy Chairman and CTO Chetan Kumar Maini said. He, however, said the company would start utilising the full capacity after three years and funds have been raised to meet other expenses.
?We have already raised 20 million dollar for R&D and our expansions. The company so far has committed 50 million dollar in the country,? Maini said, adding Reva would introduce one new model and one new variant each year.
Though hybrids and eco-friendly cars sound wonderful, the auto firms say bringing them to India still remains a huge challenge, specially the imported ones.
Honda?s Takedagawa said it was a challenging task to bring the Civic hybrid to India.
?We have to set an entirely new standard for testing and homologating this car in collaboration with Automotive Research Association of India as, there were no regulations earlier,? he said. Asking for support from the government in promoting the ecofriendly car, Takedagawa said: ?This car comes at a much higher price as the import duty is over 100 per cent. In other countries government subsidise such eco-friendly cars. We are hopeful that the (Indian) government will also look at lowering the import duty,? Takedagawa said.
He also ruled out the possibility of manufacturing the car in India saying technical constraints prevent Honda from making the car outside Japan.
The request, however, has not evoked any favourable response from the Indian government.
Finance Minister P Chidambaram told PTI Economic Service that the government would consider giving tax incentives only if the car was manufactured in India.
?We will take a look at hybrid cars when they begin to manufacture them (in India). When they manufacture and when the first car is ready to roll out that is when we will take a look at it (granting excise benefits),? the Finance Minister said. This year?s Budget cut excise duty on hybrid vehicles to 14 per cent from 24 per cent with an aim of promoting domestic production of such vehicles.
As fuel costs continue to rise consumers will start looking at alternative options. Realizing this, the automakers have taken the step towards meeting those demands. It, however, still has a long way to go and it will be a journey of many miles.
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